Planting Time Fertilizer Prices Leading to Sticker Shock
WASHINGTON, DC – For corn producers who contacted their fertilizer needs in 2020, they’ll more than likely have costs comparable to the past few years. Those who didn’t contract or purchase fertilizer early may be in for a rude awakening. According to USDA’s Economic Research Service (ERS), prices for fertilizer have skyrocketed over the past four months and will represent much more than the normal 20 percent of a corn producer’s total costs in 2021. Currently, anhydrous ammonia is trading at an average of $710 per ton – an increase of $18 since late March; urea (46-0-0) is $6 higher, now $519; and liquid nitrogen (32% spread) is nearly $13 higher at $370 per ton in Iowa according to USDA’s Market News Service. DTN reports that prices have spiked to their highest levels in six years and analysts point to the recent winter storm in Texas that forced natural gas supplies to be rerouted for electrical generation and home heating as the culprit.
(SOURCE: All Ag News)