Even though fertilizer prices have softened from the record highs seen earlier this year, they are still at historic levels. Last year, farmers who bought nitrogen fertilizer early received lower prices.
In 2021-2022, anhydrous ammonia prices rose substantially, reaching changes of over $800 per ton relative to August 2021. On the other hand, the year 2008-2009 saw substantial declines relative to August 2008. In 2008 we had a financial crisis, and ammonia prices began the year at $1,150 per ton. From those levels, fertilizer prices fell by more than $500 by May 2009.
“Do I expect fertilizer prices to drop? No,” says Bret Oelke, farm management coach with Innovus Agra. “Your choice is to book and lock it down now or take the chance it will go up. There’s no real downside.”
Will the same pattern play out this year? When do you plan to lock in your fertilizer needs for the 2023 crop season? Take our poll!
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