Skyrocketing fertilizer cost up 100 percent or more than in 2020

For many agriculture producers an increase in fertilize cost after a year of drought, the fourth largest in the state’s history is like rubbing “salt in a wound”. Many outlets are reporting the travesty. Lane Norland of Montana Ag Network (December 27, 2021 YouTube https://www.youtube.com/watch?v=vpvv3UmBpCE) reported the following price increases compared to 2020:

-Ammonia - 210%

- Liquid Nitrogen - 159%

- Urea - 155%

-Monoammonium phosphate (MAP) - 125%

- Di-ammonium phosphate (DAP) - 100%

-Potash - 134%

Producers should use soil sampling to determine the soil nutrient level of nitrogen, phosphorus, and potassium. Soil testing will allow producers to apply the appropriate fertilizer levels for production. For dryland, this is most important since we had little to no growing season moisture and nutrients applied last year are likely to still be in the soil. Skipping phosphorus fertilization may cause a 2-to-3-year lag in plant available nutrient as it take time for phosphorus to move into the root zone.

Dr. Clain Jones, Montana State University Soil Specialist and Dr. Kat Fuller, Montana State University Extension Ag Economist have created an interactive page for small grain producers where they can input fertility level, yield, fertilizer cost and determine the appropriate fertilizer rate to apply https://econtools.msuextension.org/nitrogen/springwheat.html. Dr. Gary Schnitkey, University of Illinois Agriculture Economist noted that historically fertilizer prices have only decreased 28% of the time in the spring compared to the preceding fall. So, there is no clear strategy in seeking a lower price for these nutrients, which are the building blocks of human life, in the spring of 2022 https://www.youtube.com/watch?v=6CwP4n_bRAs.

This increase is due to several factors, according to the American Farm Bureau. The Texas freeze in 2021 shut down some natural gas production which is a key ingredient in nitrogen production. Also, Hurricane Ida disrupted fertilizer production and transport. Increased global use of fertilizer and China’s decision to shut off fertilizer sales has caused a global shortage. More information can be found at https://www.fb.org/market-intel/too-many-to-count-factors-driving-fertilizer-prices-higher-and-higher.