(KNSI) – A jump in fertilizer prices has area farmers rethinking their spring crop plans.
Local nitrogen prices have doubled in the past year, and Nathan Hulinsky, Regional Educator with the University of Minnesota Extension says area farmers are hoping higher crop prices will help turn a profit this year.
“The commodity prices have really increased, which can help offset that fertilizer price. But still, if the commodity prices come down, farmers are still not going to be making any money.
Fertilizer retailers in central Minnesota report prices about $800 per ton, compared to $450 per ton a year ago. In general, a 200-bushel corn crop will need about 265 pounds of nitrogen per acre. The USDA reports Minnesota averages 8,000,000 acres of corn per year.
Hulinsky says part of the price spike has to do with the price of oil.
“It takes a lot of natural gas and petroleum products to refine some of the fertilizers to get it to a usable product. Oil is around $90 a barrel right now and we have some unrest overseas. So if we have oil going up to $120 a barrel, I do not think fertilizer is going to drop significantly.”
Area farmers are considering switching crop plans to commodities that require less fertilizer, and some are negotiating with cattle farms to apply manure to fields. Hulinsky explains that profitability on the farm this year will require patience and paying attention.
“I think the bottom line is farmers need to pay attention, even with these higher commodity prices. We haven’t seen these price levels, since the 2011 to 2013 timeframe. So it’s been about 10 years since we’ve seen prices this high. We just need to be patient and don’t be making contracts for fertilizer on a whim just because we think we need it. Watch the prices, make sure we are at some profitable levels.”
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