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Midwestern farmers paying more for all types of fertilizers over the past month

An agricultural economist at the University of Illinois says midwestern farmers are paying more for all types of fertilizers since the conflict in Iran began on February 20^th.

Nick Paulson says urea prices have spiked 38% in the Corn Belt.

“It is one of the main products that comes out of that Middle East region in terms of nitrogen fertilizer types.”  He says, “We saw an increase on the order of $240 plus dollars up to that $822.50.”

In a FarmDoc webinar Thursday, he said liquid nitrogen prices are up 12%, and ammonia prices in the Midwest are up 15%.

“We could expect easily, I think, potentially $1,000 anhydrous prices in the fall, particularly if the conflict continues,” he says.

Paulson says even products not directly tied to the Middle East have increased in cost since tensions flared.

“MAP prices are up closer to 4%.”  He says, “Potash is another one we look at here. The vast majority of our potash imports come from Canada, but we’ve seen a 2.3% increase on that over that month.”

Paulson says diesel costs have risen at least 35% due to the conflict, and those costs are also likely to be passed along to farmers in all input sectors.