Fertilizer prices double in 1 year
Farmers and ranchers left with tough choices headed into spring
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Farmers and ranchers have always been at the mercy of market volatility and weather, but 2022 could be one for the record books.
While the annual inflation rate hit 7.9% across the board for American families in February, some costs for farms and ranches have skyrocketed far beyond that.
“Fertilizer prices have nearly or already have doubled for certain nutrients,” Micah McClure of Westland Seed said. “This has impacted many local farmers and ranchers in the valley. In certain markets, the prices for some crops have risen enough that they are able to absorb some of the inflated fertilizer prices that we are experiencing. For cattle ranchers specifically, the market is in a difficult situation as the current cattle prices will make it difficult to compensate for the increased price of fertilizer.”
Fertilizer prices had already risen steeply by the end of 2021, and the war between Russia and Ukraine has only pushed them higher. Russia is a major exporter of fertilizer, with the country supplying 20% of the world’s ammonia, 18% of the world’s potash, and 15% of urea, according to past USGS data. With sanctions now in place, prices have continued to climb.
On March 15 U.S. Senator Steve Daines sent a letter co-authored by more than a dozen fellow senators to President Joe Biden, the Secretary of Agriculture and other cabinet leaders, telling of the plight of farmers. The letter states that since January 2021 the United States Department of Agricultural Marketing Services noted the following price increases: anhydrous ammonia by 203%; urea by 141%; liquid nitrogen 162%; monoammonium phosphate (MAP) by 74%; potash by 125%. The letter also noted that the cost of farm diesel has risen 95% in the same time frame.
“Ongoing supply-chain bottlenecks and the rising cost of energy are among the factors sending fertilizer prices soaring, and disruptions stemming from Russia’s invasion of Ukraine will only compound the problem. As a result, Americans will pay more at restaurants, grocery stores, and other places,” Daines wrote. “We are therefore urging your administration to review all possible options to lower the cost of fertilizer… Quickly undertaking such measures is the most immediate—and perhaps only—near-term opportunity to partially remedy the high costs of fertilizer impacting American farmers and ultimately American consumers.”
“It is important for farmers to know that some crops that they are growing this season have a higher market value than others,” McClure said. “Even with the increased fertilizer prices, they still need to consider making the appropriate application of fertilizer. Depleting your crops of the necessary nutrients will cause the farmer more money in yield loss and depleted soil nutrients than if they spent the extra amount on the correct amount of fertilizer for their fields. Soil sampling through local agronomy consultants will help determine the minimum amount of nutrients needed to reach one’s yield goals. This will minimize the total amount of fertilizer used as well as any excess fertilizer that may be wasted from over application.”
In some cases, there may be substitutions that can be made.
“Manure may be a substitute for fertilizer in certain crops systems, but highly depends on the crop, as some require higher amounts of nutrients than manure can provide,” McClure said. “Consult with your local agronomist to see if fertilizer is an option for you.”
Alternative crops can also help the soil.
“Planting legumes in a year of high fertilizer prices can help reduce some fertilizer inputs such as nitrogen, which is one of the highest inflated nutrients,” McClure said. “Legumes create symbiotic relationships with bacteria that can fix atmospheric nitrogen and provide it directly to the plant, therefore reducing the need for fertilizer. Leguminous plants include crops such as alfalfa, clovers, dry/soybeans, peas, lentils, and chickpeas.”
