A dramatic rise in fertilizer prices weighs heavily on U.S. crop farmers and input suppliers as they prepare for the 2022 planting season. Prices for nitrogen-based fertilizers commonly used for corn production have skyrocketed to all-time highs in recent months.
Fertilizer price increases are driven by nitrogen production challenges, tight global supplies, rising natural gas costs and steady demand.
According to a new report from CoBank’s Knowledge Exchange, fertilizer prices are expected to remain elevated for at least the next six months and throughout the 2022 spring agronomy season. The report also suggests that while U.S. soybean acres will rise nominally compared to 2021 because of higher fertilizer prices, the total volume of soybean acres will not exceed corn acres in 2022.
U.S. crop farmers and farm supply cooperatives are facing operational anxiety heading into 2022, driven by high fuel prices, shortages of agrochemicals due to COVID-related disruptions and, most importantly, the rise in fertilizer prices.