By Andi Anderson
Fertilizer is a hot topic earlier than usual this summer due to global supply disruptions, rising prices, and ongoing trade concerns. While many U.S. farmers already have what they need for this season, those still buying for post-emergent or side-dress applications are seeing increased costs.
Phosphate fertilizers are of highest concern. Global shortages caused by reduced exports from countries like China and increased demand from India have driven phosphate prices up sharply since March. These prices are now at their highest levels in four years. Since phosphate supplies take time to increase, prices are likely to remain high into fall and possibly next spring.
Nitrogen fertilizers are also experiencing rising costs. Prices have increased by $30–$50 per ton since spring, while corn prices have dropped. Although domestic nitrogen supplies are stable, tensions in the Middle East could impact production in exporting countries, pushing costs higher.
Potassium fertilizers remain stable, but concerns linger. Over 85% of U.S. potassium imports come from Canada. Any disruption in trade relations could impact availability and pricing. The corn-to-potassium price ratio has increased slightly from spring to summer, reflecting changes in corn markets.
To prepare for the months ahead, farmers should assess their crop plans and fertilizer needs now. Key steps include identifying products needed in larger quantities, checking minimum purchase requirements, evaluating available cash for purchases, and considering on-farm storage options.
With global uncertainty affecting costs and availability, early planning can help reduce risk and improve cost-efficiency. For more strategies on managing farm input purchases, refer to Michigan State University Extension resources.
Starting the fertilizer conversation early can help farmers secure the right products at better prices and avoid supply issues as the next growing season approaches.
Photo Credit: michigan-state-university-msu
Categories: Michigan, Crops, Corn, Soybeans