The price of fertilizer is skyrocketing and guess who are big suppliers of fertilizers minerals? That would be Ukraine and Russia. From Casey Harper at justthenews.com:
Goods and services around the country are becoming increasingly more expensive, but farmers may be among the hardest hit as inflation, supply chain issues, and Russia’s invasion of Ukraine are expected to send food prices soaring even higher.
That impact is being felt by farmers around the country.
“The cost of fertilizer is up as much as 500% in some areas,” said Indiana Farm Bureau President Randy Kron. “It would be unbelievable if I hadn’t seen it for myself as I priced fertilizer for our farm in southern Indiana. Fertilizer is a global commodity and can be influenced by multiple market factors, including the situation in Ukraine, and all of these are helping to drive up costs.”
Ukraine is a significant supplier of both crops and fertilizer materials, adding to the concern that the invasion will likely lead to shortages and price increases.
Fertilizer prices for nitrogen, phosphorous and potassium, called NPK, have exploded since December 2020.
“Because of the seasonal aspects of … this agriculture industry, it takes about six to nine months for the impacts felt in the impact market to really work its way through the supply chain and reach the consumer,” said Nathon Carson, head of supply chain operations for Chemical Dynamics, a multi-million dollar fertilizer supplier based in Florida servicing 12 states. “The crazy thing is, fertilizer prices for NPK, especially nitrogen, the most important nutrient, went up by about … doubled essentially in Q4 of 2021, which means we are not really going to see those impacts until this coming summer.”