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High fertilizer prices could persist as global disruptions hit farmers

Ag supply chain stakeholders say there are limited short-term policy solutions to offset the global disruptions driving fertilizer and fuel costs higher, and lawmakers are exploring options.

Brian Glenn, a policy expert with the American Farm Bureau Federation, tells Brownfield…

“Market relief would address those short-term needs. We hear a lot from folks that are just on the brink, barely able to put a crop in the ground this spring or make it another growing season.”

Glenn says another solution is passing nationwide, year-round E15.

Matt Frostic, a Michigan farmer and the first vice president of the National Corn Growers Association agrees and says that’s a faster way to improve margins compared to reducing ag input costs.

“Those negative margins shrink by better markets.”

In the meantime, Frostic says he’s preparing for higher costs to carry into the next two growing seasons.

Frayne Olson, an ag economist with North Dakota State University, says it’s a slow, painful process to improve production costs, but high fertilizer prices could be the cure for high prices.

“High prices create some rationing. I know that people are adjusting, not only here in the U.S., but globally, adjusting their fertilizer usage. I think there’s some adjustments going on in their supply chains on who they’re buying fertilizer from, which will have this longer term tail effect.”

Watch more about the rising costs of ag inputs and the Middle East Conflict in the latest Inside D.C.