Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Fertilizer prices going up

Large amount of fertilizer goes through the Straight of Hormuz but with ships not risking the passage the world's supply chain is now interrupted and prices already heading up.

We get ZERO from the middle east. Just a couple years ago, prices were soaring because of our squabble with the canucks. Before that, it went up cause oil prices were just high (no conflicts happening). So where do we get it? Prices are going up cause trump just released a crap ton of money to help the farmers in the US and the corporations know it. So...they just bump their prices up.

Every time a subsidy gets created for something, the producers raise their price because they know its guaranteed money.
Tositoes/Pepsi just reduced their prices because RFKJr cut SNAP off from junk food. They had higher prices because they knew they would get that EBT money.

Exactly

Side note…. Fertilizer always jumps in price from January prices to march/April prices. I book 24 tons every year in January and have it brought in first of February. Prices always jumps $25-50 a ton just about every year.

Great point and true. But only for 20 states. All but 2 are red states.

Its also why college tuition has gotten so high. Guaranteed student loans. Universities know they will get paid by the head regardless of if the head is a capable student or not.

Well. Yeah.

The U.S. Justice Department recently launched an antitrust investigation into whether leading commercial fertilizer producers colluded to raise prices.

The companies whose conduct is under scrutiny include phosphate and potash suppliers Nutrien Ltd. and Mosaic Co., as well as CF Industries Holdings Inc., Koch Inc. and Norway’s Yara International ASA, which collectively control most nitrogen-based fertilizer sold in the U.S. and dominate potash and phosphate markets.

The scrutiny comes after the U.S. fertilizer industry underwent dramatic consolidation over four decades. The number of nitrogen fertilizer producers declined from 46 to 13 between 1984 and 2008, a reduction of 72%, according to USDA data. Today, four firms control 75% of the nitrogen fertilizer market domestically, while two firms control nearly 100% of the U.S. potash market

The US actually imports a lot of nitrogen and phosphate from the Middle East and some Potash from Russia and Israel. Prices have went crazy on Nitrogen globally due to exports through Strait of Hormuz and natural gas curtailments in the Middle East. Sauda Arabia is on of the biggest importers to the US for phosphate and the supply is shut off at this time as well. Some of it is an over reaction in the market but if it doesn’t get fixed soon it’s going to be a supply problem for the globe and at a terrible time for the American farmer. The last thing the farmer needs is higher input costs. The US Fertilizer markets are actually trading cheaper than a lot of the other global markets at this time and usually we are closer to the same, so the price is not up due to the government payouts. I can promise you the US/global fertilizer market is a lot more complex than one would ever think.

Well, i reckon peaches will go up a little this year