Daniels highlights fertilizer availability and prices for farmers in 2023

By Samantha Daniels

UNL Extension, Perkins County

Fertilizer costs and availability are a concern for producers in Nebraska and nationwide. A combination of world events and lasting impacts from the COVID-19 pandemic have disrupted the supply of diammonium phosphate (DAP), phosphate rock, potassium chloride (potash), triple superphosphate (TSP), and nitrogen-based Urea. 

Prices for these fertilizers peaked in April and May of 2022 and while they have come down a little since then, prices are expected to remain elevated into 2023.

The invasion of Russia into Ukraine and the subsequent war has impacted fertilizer cost availability both directly (through international sanctions against Russia) and indirectly (through impacts to natural gas cost and availability). 

Natural gas prices have increased significantly, especially in the EU which relies on Russia for roughly one-third of its natural gas supply. While the United States is a large producer and exporter of natural gas, increased export demands have driven up prices here at home. 

Increased natural gas costs lead to increased prices for Nitrogen fertilizers which utilize natural gas during the production process.

The news is not all negative, however. The USDA has implemented a “Fertilizer Production Expansion Program” which makes available $500 million in grants for fertilizer producers in the United States. 

This program seeks to support small-scale, independent fertilizer suppliers in America in order to mitigate the shortage of fertilizer and support producers here in the U.S. 

For more information about this program, please visit: https://www.rd.usda.gov/programs-services/business-programs/fertilizer-p...

Producers are encouraged to use the free production and management calculators in order to determine the most cost-effective fertilizer program for their operation. The calculators can be found here: https://cap.unl.edu/crops 

Other sources: https://cap.unl.edu/crops/storm-world-fertilizer-markets-continues