A complex market environment: fertilizer.
Today’s fertilizer market is volatile — so how can growers get the most out of their fertilizer program on farm to reduce input costs? That’s the question Mid-West Farm Report explores with The Fertilizer Institute President and CEO Corey Rosenbusch.
He says the reason the fertilizer market is as wild as it is, is due to severe weather events, decreased plant capacity, geopolitical events in China and Russia, and high demand for fertilizer with these high commodity prices.
A myth Rosenbusch has heard on the road is that there’s no fertilizer supply. He says some of the farmers he’s talked to have not been able to get a price from their retailer and then assume it’s because there’s no fertilizer to price. He says there’s plenty of supply, but because the market is so volatile, “no one necessarily wants to take the risk so far in advance because they don’t know what next month is going to look like.”
He says communicate and work with your retail agronomist, develop crop nutrient plans and examine your stewardship — applying fertilizer at the right source, rate time and place.
Toward the beginning of the Russia-Ukraine war, USDA warned fertilizer companies and other farm suppliers against price gouging over the conflict. U.S. Agriculture Secretary Tom Vilsack said the department would be watching for unjustified price increases.
Rosenbusch says to avoid getting scammed or paying an unfair price, communication is key with your retailer. He says if the farmer is not profitable, the fertilizer business loses, too. He adds growers can watch the marginal producer prices — where the global fertilizer price is set. This gives some price transparency.
As far as an end in sight to high fertilizer prices, he says this current market condition is likely what we’ll see through the end of next year.
Leave a Reply