Nitrogen costs less, but still expensive

An agriculture economist says the price of nitrogen fertilizer has stabilized, but it’s still high.

Gary Schnitkey with the University of Illinois tells Brownfield all three major forms of nitrogen matched their prices at the beginning of the 2023 purchasing season but dipped a little. “We have seen it come down from levels earlier in the year and late in the fall for 2022, early spring 2023, but we are still at very high levels.”

And Schnitkey says farmers are still paying a lot. “We haven’t seen above a thousand dollar anhydrous ammonia before 2021 very often, and in fact, it was in 2008 the last time we saw prices in that level.”

Schnitkey says the average price for anhydrous ammonia in Illinois is currently $1,116 dollars a ton, down from 14 hundred dollars earlier this year.  Schnitkey says nitrogen prices are closely linked to corn prices and natural gas prices, and natural gas prices are now below average, which should lead to some lower-cost nitrogen.

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