By Scout Nelson
A nationwide survey highlights growing concerns among farmers as fertilizer prices continue to rise. Many producers say they cannot afford to purchase enough fertilizer to meet their needs for the year. This creates serious challenges for crop production and farm planning.
The survey, conducted by the American Farm Bureau Federation, shows that 70% of respondents say fertilizer costs are too high. More than 5,700 farmers take part in the survey, including producers from South Dakota. Their responses match trends seen across the Midwest.
Regional differences are clear in the results. Farmers in some areas report greater difficulty in affording supplies. Pre-purchasing fertilizer also varies widely. Even in regions with higher pre-booking rates, many farmers still enter the season without securing enough fertilizer.
“We invited South Dakota farmers and ranchers to participate in this survey because it is important to gather accurate information about the impact of skyrocketing fertilizer costs on American agriculture,” said Scott VanderWal, President of South Dakota Farm Bureau Federation. “Farmers are preparing to plant their most expensive crop ever, and we need to do everything we can to support stable and affordable inputs.”
Global events are increasing pressure on fertilizer supply. Tensions in the Middle East disrupt supply chains and limit access to key materials. These disruptions continue to push prices higher.
“Spring planting decisions depend heavily on access to fertilizer and diesel fuel, both of which have been impacted by geopolitical risks that have disrupted global markets,” the Market Intel states. “Since the escalation of tensions in the Middle East, nitrogen fertilizer prices have risen more than 30%, while combined fuel and fertilizer costs have increased roughly 20% to 40%. Urea prices have increased by 47% since the end of February, marking the largest month-to-month percentage increase in the price of urea. These increases are occurring when many producers were already facing tight margins for many consecutive years.”
Because of these challenges, some farmers plan to reduce fertilizer use or delay applications. This may affect crop yields and overall production.
AFBF President Zippy Duvall said, “The skyrocketing cost of fuel and fertilizer is creating more economic hardships for farmers who have already endured years of losses. Without the necessary fertilizers, we’ll face lower yields and some farmers will reduce acres altogether, which will impact food and feed supplies. It’s too early to know how this will affect food availability and prices in the long run, but it’s a warning light that we’ve shared with leaders in Washington. We look forward to working with them to find solutions so farmers can continue to feed families across America.”
Most farmers also report that their financial situation remains the same or worsens. This highlights the need for stable input costs to support farming operations and maintain food production.
Get more survey results and read the full Market Intel here.
Photo Credit: gettyimages-fotokostic
Categories: South Dakota, Equipment & Machinery, Rural Lifestyle