Add Insult to Injury: Fall Fertilizer Prices Jump
While farmers are busy finishing up corn silage chopping and are greasing up their combines to harvest corn grain, fertilizer prices are creeping up over year-over levels, says Gary Schnitkey, an ag economist with the University of Illinois.
The higher costs could add $15 per acre to the cost of raising corn next year, and suggest dairy farmers need to make the most of their manure applications to meet crop needs.
Fertilizer prices are highly correlated with energy costs, says Schnitkey. “Brent crude oil prices recently reached $80 per barrel, the highest level since 2014,” he says.
Anhydrous prices in Illinois are now about $500 per ton, up $60 to $90 over last year. The only good news is that 2018 anhydrous prices are near 2016 prices, and prices are still below the 2009-2018 average.
Phosphate prices were also approaching $500 per ton, with prices up $55/ton over 2017. And again, the 2018 prices are still $40 to $50/ton lower than the 2008-2018 average.
Potash prices are up about $33 per ton over last year, or about a 10% jump. And again, they are still lower than the 2009-2018 average.
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