why is fertilizer so high

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  • What happens when fertilizer prices are too high?

  • Massey said that if prices get too high, farmers might shift away from corn to a different crop and not use as much fertilizer. He also noted that livestock producers will likely use less fertilizer on pasture.

  • Does fertilizer affect crop yields?

  • A survey of U.S. crop production estimated that average corn yields would decline by 40 percent without nitrogen (N) fertilizer. Even greater declines would occur if other macronutrients, phosphorus (P) and potassium (K) were also limited. Numerous long-term studies have also demonstrated the contributions of fertilizer to sustaining crop yields.

  • What determines the price of nitrogen fertilizers?

  • The cost of natural gas plays a big role in the price of nitrogen fertilizers. Indeed, about 70 per cent of the variable cost of ammonia production is dependent on the price of natural gas.

  • What drives fertilizer prices?

  • In the past few years demand has been the key factor in driving prices as strong crop returns prompted growers to pour on the fertilizer. Supply will eventually catch up with demand, but new fertilizer plants cost a lot of money and come with long lead times.

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