Fertilizer Prices Hit Lowest Price in a Decade
USAgNet - 10/15/2019
Fertilizer prices dramatically increased last Spring. After anhydrous ammonia spent most of 2018 around $500 per ton, prices jumped to more than $600 per ton in early 2019. Prices remained mostly unchanged until late summer. This week's post reviews the
latest fertilizer price data.
David Widmar of Agricultural Economic Insights reports that fertilizer prices have fallen from their highs during the farm economy boom. Since 2015, anhydrous ammonia prices have ranged from a higher of more than $700 per ton to a low of $400 per ton.
Broadly speaking, prices reached their lows between 2016 and 2017. Potash prices fell to $300 per ton in late 2016, while DAP nearly hit $400 per ton in early 2017. Anhydrous ammonia hit its low of $400 per ton in late 2017. Since the 2016-2017 lows,
prices have trended higher. Potash prices, for example, climbed from $300 per ton to nearly $400 per ton in 2019.
In recent weeks, fertilizer prices have sharply declined. Compared to prices last spring -the average of prices reported in April and May- anhydrous ammonia prices are down 22% and DAP 17% lower. Potash prices have also declined (-5%).