Why have fertilizer stock prices been so high? There is aglobal shortage in nitrogen fertilizer along with there being supply chain shortages. This has caused a significant domino effect, as now farmers, produce markets, and other agricultural companies are limited to the resources of fertilizer they have. Article continues below advertisement
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Why are nitrogen fertilizer prices so high?
Nitrogen fertilizer prices have been high for several months now. In some cases, the price has gone up 50 percent or more, but why is it increasing? The price of nitrogen fertilizers is directly related to the price of natural gas (methane).
Why is fertilizer so important?
Fertilizer is vital to feeding not only the country, but the world. It contains essential nutrients for plant life, and without it, American agricultural yields will quickly suffer as well as food prices in local grocery stores.
How does fertilizer affect the environment?
To grow, plants require nitrogen compounds from the soil, which can be produced naturally or be provided by fertilizers. However, applying excessive amounts of fertilizer leads to the release of harmful greenhouse gases into the atmosphere and the eutrophication of our waterways.
What caused the increase in fertilizer use in the 1970s?
This increase coincided with dramatic increases in crop yields. In the 1970s, high agricultural commodity prices created a farm boom in which farmers planted more acres to crops and increased fertilizer applications. Phosphate and potash use has been relatively constant since 1985.