Stay Informed

Three hundred percent.

It would be unbelievable if I hadn’t seen it for myself as I priced fertilizer for our farm, but as you know, the cost of fertilizer is up as much as 300% in some areas. That sounds crazy to me, and probably to you too, but there are multiple reasons for these skyrocketing prices, and some of those reasons have been around for several years.

Fertilizer is a global commodity and can be influenced by multiple market factors, and all of these are helping to drive up costs.

Here are some examples: increased energy costs (especially natural gas), increased domestic and global demand for fertilizer, the lingering impacts from COVID-19 and distribution and supply chain issues. In addition, impacts from hurricanes, ice storms, labor issues and infrastructure challenges, including rail logistical issues and increased freight rates, have caused disruptions in production and distribution.

And of course, trade disputes and political differences continue to impact global prices and availability. The U.S. is the third largest producer of fertilizer globally, according to the Fertilizer Institute, but we still have to import all three nutrients, especially nitrogen and potash, to meet demand.

Meanwhile, fertilizer companies have asked the U.S. Department of Commerce to investigate imports of urea ammonium nitrate (UAN) from Russia and Trinidad and Tobago, and the department has issued a preliminary countervailing duty determination that will add to the cost of fertilizer. Now is not the time to add this to the list of things increasing our input costs.

The problem has been developing for several years, so unfortunately, the solution will take time, too. Farm Bureau is working to address rising fertilizer prices and supply chain issues. We are urging the Biden administration to look for ways to bring fertilizer prices down, including resolving supply chain issues and removing import duties.

The American Farm Bureau Federation has encouraged the U.S. International Trade Commission to avoid any actions that could create additional tariffs on fertilizer supplies, and it’s looking for ways to address consolidation and lack of competition in the fertilizer market.

Understanding the factors causing this huge problem is one thing. But it doesn’t change the fact that these rising input costs will have a major impact on all of us this spring as we prepare to put crops in the ground and that they will eat away much of the profit we might have expected to make from higher commodity prices. 

Our members have seen the best and worst of what it means to be a farmer. But I know your dedication to agriculture continues even in the most difficult of times as we find a way to feed Indiana, feed the country and feed the world.