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Rising fertilizer prices likely to continue through spring

An executive for an ag financial advisor says fertilizer costs will likely continue rising before leveling off.

StoneX Director of Fertilizer Josh Linville tells Brownfield he’s seeing nitrogen prices that are topping $1,300 and the global picture is telling him the cost of anhydrous is primed to increase further.

“We could very, very easily see prices [$1,600] – $1,700 to the farm,” he said.

He said if farmers continue their heavy application run this fall and drain supply, fertilizer suppliers will continue to raise prices.

Linville says the market is trapped in a cycle of higher fertilizer costs lowering expected corn acreage, which raises corn price, which then raises expected acreage…

“And that justifies fertilizer prices going up because not it’s chasing the added demand it just saw and it’s this vicious, vicious circle that we’re in,” he said. “And unfortunately I think it’s one of those where corn is going to continue to push to get its acres which just keeps supporting the fertilizer price through next spring.”

Linville said it’s hard to tell if strength in the grain market or supply chain issues are having a larger contribution to the fertilizer run up.

Brownfield interviewed Linville at the National Association of Farm Broadcasting in Kansas City Wednesday.