Fertilizer costs are up and supplies are tight, but is there any relief in site? Prices have gone the way of commodity prices this year, and Kyle Johnson with ADM Farm Direct Fertilizer says it’s pretty tricky to predict what prices will do through the rest of spring.
“Near as we can tell the supply on nitrogen in particular is very snug, and we expect to see some appreciation going through the planting months, likely to see some sort of a market reset into the summer months getting into the fill programs,” he said. “But, for right now it’s a good idea to get all your needs covered so that you’re sure to have the material going into this spring.”
Johnson says with corn values up, the demand for nitrogen goes up too, further stressing available supply.
“I think a lot of growers were thinking of throwing an extra 20 pounds of N out there this year, and if you look at that on a percentage basis, that’s about 10 percent more that they’re going to apply. From a macro-economic standpoint that is very significant, and it can deplete the supply quickly, or at least draw it down out in the marketplace.”
Farmers can get better control of fertilizer costs with the ADM Farm Direct Fertilizer program. The program offers deferred values so you can lock in prices up to 18 months out, “so that growers can make sure that they are locking in as many inputs as they possibly can,” Johnson said. “In cases that growers are booking grain into 2022 or farther, if you’re not locking in as many inputs as you can, you’re simply speculating the market at that point, so it’s important to go ahead and get those inputs locked in. If you reach out to any of the Farm Direct reps here we can get you deferred values in most areas.”
You can visit the website for details, or download the ADM fertilizer app. More from Johnson: