(Brownfield Network) – Fertilizer prices are expected to approach record high levels in 2022, bringing costs to the farmer up with them.
Farm Management Specialist Gary Schnitkey with the University of Illinois tells Brownfield the price of major fertilizers in Illinois increased at least 50% in 2021, which will translate to higher fertilizer costs in 2022.
“Higher commodity prices, labor shortages, the COVID situation, and overall strong demand for corn and soybeans right now are leading to where we are at currently.”
He says it is unlikely for prices to reach the all-time high levels seen ahead of the 2008 financial crisis, but today’s numbers line up with 2012 and 2013.
He uses prices in Illinois at the end of July for reference. “$746 per ton for anhydrous ammonia, up 53% from last year. DAP is $717 per ton, which is a $327 increase and potash is at $600 per ton.”
He says fertilizer costs to the farmer in 2022 will heavily depend on fertilizer prices moving forward. He says farmers should factor fertilizer prices into their 2022 corn and soybean budgets as it may impact crop choices.
The audio below is an interview with Gary Schnitkey on fertilizer prices.
