Corn acres expected to decline

High fertilizer prices are shaping up to be a significant factor for lower U.S. corn acreage this year, according to David Asbridge, Doane Ag Services, St. Louis, Mo. Asbridge spoke at the National Alliance of Agricultural Crop Consultants in Tucson, Ariz., in January.

High natural gas prices are part of the reason why fertility prices are skyrocketing, although not directly, according to Asbridge. Rather, high natural gas prices are forcing U.S. nitrogen manufacturers to cut back on production, leading to more imports, which is increasing global demand in a tight supply situation.

The 20-year long-term average price for natural gas had been about $2.10 per million British thermal units up until 2000. It takes about 33 million Btu to produce a ton of anhydrous ammonia, which is the base for other nitrogen products and is also a major input in phosphate products.

Over the last few years, there has been a tremendous upsurge in natural gas prices in the United States to an expected average of $13 per million Btu for 2005. Natural gas prices have since declined to around $9 per million Btu, but