production prices

gbs · Feb 20, 2022

Is there any practical reason other than price gouging for the COST of fertilizer and chemicals which have gone up from 2 to 4 times from last years cost even though they weren't in short supply? About all the
suppliers around here were filled, some to above to capacity last fall . Tires, oil, fuel and so on, with to many to mention are following the same trend. The thing that gets me is when some makes the
statement that crop prices are high and input cost are following that, that may be so to some extent but how does an increase of over a dollar on corn and 2 dollars on soybeans since last fall equate to 30%
nitrogen last year being less than $200.00 a ton too over $600.00 and fertilizer at $390 at ton too near $800.00 priced DAILY to which I could go on and on.

Charlie M · Feb 20, 2022

I've heard the price of natural gas has a big affect on fertilizer prices. Natural gas prices have gone way up. Not sure how its used in the process.

Gambles · Feb 20, 2022

I was listening to a so-called fertilizer expert on the radio a few weeks ago. (No real qualifications, he just called himself an expert) He was spewing out a bunch of facts, or so-called facts and he basically said the price of fertilizer follows the price of corn, not the price of natural gas or crude.

sourgum · Feb 20, 2022

Don't know the answer to your question. An economist expert was on a farm show couple days ago. He said he expects as much as 2 million acres switched from corn to soybean planting this spring. He said the reason is some farmers do not want to pay for nitrogen fertilizer at 600 dollars / ton ( or more ) to produce a corn crop.

coonie minnie · Feb 20, 2022

While natural gas did increase in price, and it is used to make synthetic N, a lot of what is going on is price gouging. There are also significant issues with transit, etc, but most of that is resolved.

Traditional Farmer · Feb 20, 2022

Its called supply and demand,supplies are tight this year.If corn went to $12 bushel would you consider yourself price gouging or just selling at the market price?

NY 986 · Feb 20, 2022

I was quoted 900 dollars per ton for 60 percent potash just last week. Potash is pretty much a cartel type business with very few points of production. My supplier was pretty candid in saying that the input producers and suppliers have pretty well decided that they are entitled to a cut versus a certain percentage above their costs to deliver a product to the retailer.

jacksun65 · Feb 20, 2022

One thing that nobody is talking about is the Fed printing double the amount of dollars than they were two years ago. So the dollar is worth half as much. But the min wage went up to 15 from 7, LOL

NY 986 · Feb 20, 2022

Minimum wage in NY has not been 7.00 dollars per hour for decades now.

BonaparteSouth · Feb 20, 2022

NG is 35% 0f cost of NH3. transportation is a big chuck also. Labor and then plain old ripping us a new hole!!! ps heard good old USA is selling and shipping NG to ease their shortage in europe. When do you we will get paid back!!!

Jason1Pa · Feb 20, 2022

I don't understand why natural gas prices went up so much. All the wells around me and surrounding area are being shut down. Some are even having the line dug up. Asked the workers and they said they have so much gas that they don't know what to do with it because all of them big deep wells they got. Instead of wasting time and money maintaining them they are just giving them up. Weird..

DoubleO7 · Feb 20, 2022

(quoted from post at 18:43:51 02/20/22) One thing that nobody is talking about is the Fed printing double the amount of dollars than they were two years ago. So the dollar is worth half as much. But the min wage went up to 15 from 7, LOL

Oh yes, the feds hand out stimulas money,, give employers free millions to not lay off people.
And then all industries jack up prices.
Who was first to jack up prices and be the gouging leader then??

coonie minnie · Feb 20, 2022

Similar here. In fall 2020 I put down a bunch for $285. Crazy.

coonie minnie · Feb 20, 2022

I don't blame gas companies for shipping stuff overseas. It's a free market, and I benefit when my corn, beans, and dairy go overseas. We can't have it both ways.

dcarp · Feb 20, 2022

Hard to give a short concise answer because its a complicated web of supply & demand issues coupled with numerous geopolitical problems and the C-19 effect. More farmers worldwide are growing things which equals more demand. The price of natural gas & coal are up driving up prices. A number of plants shut down during the year, for periods of time, due to weather issues shortening supply. China & Russia are both playing the political card by limiting exports which also cuts supply. Add the C-19 effect of, at times, interrupting the supply chain. All contributes to the perfect storm for rising price.

caterpillar guy · Feb 20, 2022

I'd like to buy some of that 600 dollar potash and nitrogen. Got it priced for 955 urea and 800 potash. ESN could add another 150 or so per ton price.

Bruce from Can. · Feb 20, 2022

I dont know the full reason why fertilizer prices are so high but. My manure pile never smelled so good before !!

Machnegative · Feb 20, 2022

(quoted from post at 16:35:21 02/20/22) Hard to give a short concise answer because its a complicated web of supply & demand issues coupled with numerous geopolitical problems and the C-19 effect. More farmers worldwide are growing things which equals more demand. The price of natural gas & coal are up driving up prices. A number of plants shut down during the year, for periods of time, due to weather issues shortening supply. China & Russia are both playing the political card by limiting exports which also cuts supply. Add the C-19 effect of, at times, interrupting the supply chain. All contributes to the perfect storm for rising price.

Well said. This has been brewing for a couple of years globally. Like stated above, lots of contributing factors. Fertilizer manufacturers watch grain prices and want a set piece of the pie. When you can sell high price grain a couple years out, not much to drive fertilizer prices down. NG prices high affects most N sources since they are all built off ammonia, (the first building block of UAN, urea,AMS, MAP,DAP, etc) which is made using NG and air. (Very simplified chemistry). Sulfur products (ammonium sulfate AMS, elemental sulfur, even to an extent MAP, DAP, and 10-34-0) use byproducts of the oil and auto industry, both that are not operating at full capacity. Also remember, your local CoOp or dealer has to set prices with an eye towards replacement cost, not just the cost of inventory on hand. They have to capture margin when prices go up, knowing they will likely sell at a loss when the market dips or risk losing business from being too high. Dont even want to look at crop protection supplies and costs this year. It will be a wild one for sure.

coonie minnie · Feb 20, 2022

I agree.

Mark-Mi · Feb 20, 2022

Local large fertilizer retailer here is conditioning farmers to not think how many dollars a product costs but how many bushels of corn(at current prices) per acre to apply product per acre.

SVcummins · Feb 20, 2022

A race car driver is your problem

Vicinalvictor · Feb 20, 2022

I wonder what the Cartels pay for fertilizer per ton in Mexico?

moresmoke · Feb 20, 2022

Time to get the spreadsheet out and farm for maximum profit. That point may not be maximum yield.

donjr · Feb 20, 2022

IF corn went to $12, it would still be at about half price.....

Traditional Farmer · Feb 20, 2022

Seed and fertilizer folks are probably saying the same thing about whatever they are selling.

Millwright · Feb 21, 2022

This is the type of year to cut back on inputs to level where you might take a little out of soil. Leave the companies with big over-stocks they can't sell and have to carry over to next year. People need to start realizing the power that you have in your buying choices.

dhermesc · Feb 21, 2022

I'm just curious as who thought input costs would GO DOWN as time passed? Prices were increasing last fall but you could have had things locked in then. Even my 18 year son locked in his fertilizer prices for this spring. Anyone that thought doubling the amount of cash in circulation in 2 years wouldn't bring on inflation hasn't been paying attention.

1948CaseVAI · Feb 21, 2022

Legitimate supply and demand balancing does not equal price gouging. Profit does not equal price gouging either.

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