AFBF: Fertilizer Prices Dropping

U.S. fertilizer prices are beginning to fall at the wholesale level, according to a report by the American Farm Bureau Federation (AFBF), after increasing for six consecutive years. “Up until very recently, fertilizer prices were astronomical at both the wholesale and retail level,” said AFBF senior economist Terry Francl. “Fertilizer producers were clearly reacting to record commodity prices, and companies priced their products accordingly.”

Now that prices for corn, soybeans and other commodities have declined by 50% or more from summer peaks, wholesale prices for fertilizer are dropping as well, but retail prices have yet to fall. Francl said the wholesale fertilizer price drop began about two months ago, generally after the time farmers applied fall fertilizer to their crops.

Wholesale prices for anhydrous ammonia in the Corn Belt have declined from the $1,000 per-ton-plus range, to the $500 range. Urea has dropped from the mid-$800 range, to the mid-$300 range. Diammonium Phosphate (DAP) has declined from $1,100 to $600 per ton. The decline in potash prices has been less notable, dropping from a little over $900 per ton to slightly over $800.