Last year brought near-record fertilizer prices with most expected to remain elevated for the foreseeable future.
Our partners at DTN have tracked retail fertilizer prices going all the way back to 2008. In March 2009, DAP was hovering around 353 per ton. Today, it is just over $1,000. Just six years ago, anhydrous was about $400 per ton and now, it is almost four times that.
Weather, the war in Ukraine, and the pandemic all contributed to the high costs. Last fall, USDA announced $500 million to expand fertilizer production. Leaders at GROWMARK say every little bit helps.
“Fertilizer is an expensive business to get into and that’s when we talk about barriers to entry. Cost is certainly something that keeps people from jumping in, so is it enough? Anything helps. I think it’s always good when we can divert funds to support our industry, so we’re certainly supportive of that, but I think good ole economics is really the right answer, right? If people are making money at it, then that’s the right place to put the investment. I think those are really what are going to drive those decisions long term,” said Kreg Ruhl.
