WASHINGTON, D.C. (RFD-TV) — Fertilizer remains one of the largest input costs in crop production, making market volatility a major concern for farmers and ranchers.
American Farm Bureau Federation (AFBF) economist Dr. Faith Parum joined us on Friday’s Market Day Report for the latest Farm Bureau Intel Report to discuss the current fertilizer market and a new white paper examining policy options to strengthen the U.S. fertilizer supply chain.
Parum said fertilizer markets continue to experience volatility, driven in part by ongoing geopolitical tensions. While prices have eased somewhat during the summer because of seasonally lower demand, she said volatility is expected to remain a factor as producers look ahead to future growing seasons.
She said the white paper was developed in response to questions from Farm Bureau members seeking a better understanding of the fertilizer market. The report provides a policy-neutral overview of how fertilizer markets operate, including where key nutrients come from, import and export dynamics, and factors that influence supply and pricing.
The paper also explores a range of policy options that could help strengthen the fertilizer supply chain. Among the topics examined are export controls used by other countries, strategic fertilizer reserves similar to the Strategic Petroleum Reserve, and other approaches designed to improve supply stability. Rather than recommending a single solution, the report outlines the advantages and disadvantages of each option to help inform policymakers and producers.
Parum said one of the report’s biggest takeaways is that fertilizer markets are complex, with different nutrients facing different supply and demand dynamics. She said any future policy discussions should recognize those differences when considering ways to improve market resilience.
The full white paper, along with additional Farm Bureau fertilizer market resources, is available through the American Farm Bureau Federation’s Farm Bureau Intel section.
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