Iowa Senator Chuck Grassley says fertilizer costs are top of mind for many farmers across the United States. He worries about consolidation, and he also makes a prediction about what lies ahead.
“The issue will become even more acute in the fall as farmers look to purchase next year’s fertilizer. I’ll continue pushing for the Administration to keep farmer input costs in mind.”
Grassley says there are a number of reasons farmers are worried about these costs, citing geopolitical issues, like the war in Ukraine and a drop in phosphate exports from China. Despite all of that, retail prices have stayed steady in the short term and remain below last year’s range.
Analysts with DTN say prices for all eight major fertilizer types were mostly flat last week, but seven are now higher than this time last year. Urea prices have climbed 32 percent over the past year. UAN-32 is up 30 percent, while UAN-28 is up 23 percent. Potash is the only fertilizer lower this year and about five percent below last summer.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
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Geopolitical tensions in the Strait of Hormuz disrupt fertilizer shipments, raising costs and creating uncertainty for U.S. farmers ahead of planting season.
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