Fertilizer prices continue to skyrocket, as much as 300% in some areas, as farmers grapple with increased costs as they prepare for the 2022 growing season. The American Farm Bureau Federation’s latest Market Intel examines the short- and long-term factors impacting fertilizer supply and demand.
Farm Bureau economists found several elements are contributing to record-high prices including:
- Increased prices for raw nutrients including nitrogen, phosphorus and potassium;
- Increased global fertilizer demand;
- Increased energy costs;
- Distribution and supply chain disruptions; and
- Trade duties.
“Rising fertilizers prices are a great concern for farmers across the country,” said AFBF President Zippy Duvall. “The rising cost of supplies is slowing down the momentum America’s farmers were starting to build through higher commodity prices and increased demand for their products. Hard-working families must be able to do more than just break-even. We urge the Biden administration to look for ways to bring fertilizer prices down, which include resolving supply chain disruptions and removing import duties, so farmers can continue growing the food, fuel and fiber America relies on.”
The Market Intel found that compared to September 2020 prices, ammonia has increased over 210%, liquid nitrogen has increased over 159%, urea is up 155%, and monoammonium phosphate (MAP) has increased 125%, while diammonium phosphate (DAP) is up over 100% and potash has risen above 134%.
Read the entire Market Intel here.