World Demand Huge Factor in Soaring Fertilizer Costs

Nitrogen and phosphorus fertilizer prices are expected to keep climbing in 2008. Several factors are contributing to this change, says Gary Hergert, University of Nebraska-Lincoln soils specialist says.

Increases in fertilizer prices often are blamed on natural gas prices because natural gas accounts for 80 to 90% of the cost of producing anhydrous ammonia, the base material for producing all other nitrogen fertilizers, according to Hergert.

“However, that doesn’t represent the whole story.”

…”With fertilizer being a worldwide commodity, the U.S. must compete with other buyers,” he adds. “The weak U.S. dollar makes fertilizer more expensive for U.S. producers.” The U.S. imports 75% of its urea nitrogen fertilizer.

Nebraska Farmer