Some farmers take advantage of lower fertilizer prices ahead of fall

Just last week, anhydrous was down six percent, and experts say farmers are looking to lock in an attractive deal on fertilizer before fall.


With fertilizer prices significantly lower than last year, some farmers are taking advantage and locking in fall prices now. DTN shows all commercial fertilizers are between 20- and 50-percent off last year’s prices.

Just last week, anhydrous was down six percent. The seven other major fertilizers were down as well. Leaders at CHS Inc. say, with spring work done and side dress nearing completion, operations are just looking ahead to fall business and locking in an attractive deal.

Leaders at the American Farm Bureau warn the conflict in Ukraine could put pressure on those prices.

“I think maritime insurers are not going to be extending very favorable rates for anyone wanting to sail the Black Sea,” said Dave Salmonsen, Senior Director at American Farm Bureau Federation. “So that will certainly at some point have an impact, you would think, on fertilizer.”

Aside from the potential impact on fertilizer prices, Salmonsen says, the unrest in the Black Sea could boost demand for food donations from the United States.

“How much ahead of time they stockpiled; how much they were able to [set aside]; how much reserves they have,” Salmonsen continued. “But again, if this is a real disruption, that really shorts supply and shorts their opportunity to import. There certainly may be more demands for food assistance from the U.S. and from other countries.”


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