Fertilizer Prices Could Affect 2021 taxes, 2022 Planting Intentions
Farmers’ inability to purchase their fertilizer in 2021 for 2022 means they will likely face a higher tax bill in 2021, according to an American Farm Bureau Federation’s (AFBF) Market Intel service report.
In the report released Monday, AFBF noted there are many reasons fertilizer prices have skyrocketed. “Given all these factors, fertilizer prices are expected to remain high through springtime, which may compel some farmers to shift planted acres away from corn to commodities that use fertilizer at a lower rate, like soybeans or wheat,” said the report.
“With the price of ammonia about 85% correlated with the price of corn, farmers must consider whether the increased cost of fertilizer and other inputs can be recovered by cash receipts from crop revenues in order to break even. There are also expectations retailers will have to turn customers away because they will not be able to deliver fertilizer products on time, increasing the need for supply chain and infrastructure improvements.”
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