Fertilizer Shortage May Upset Spring Crop In U.S. Farms

A global shortage of nitrogen fertilizer is driving prices to record levels, prompting North America's farmers to delay purchases and raising the risk of a spring scramble to apply the crop nutrient before planting season.

Photo Insert: A tractor spreading artificial fertilizer on a field of crops.

Farmers apply nitrogen to boost yields of corn, canola, and wheat, and higher fertilizer costs could translate into higher meat and bread prices, Rod Nickel reported for Reuters on Nov. 25, 2021.

World food prices hit a 10-year high in October, according to the United Nations food agency, led by increases in cereal crops like wheat and vegetable oils.

The Texas Arctic Blast in February and Hurricane Ida in August disrupted US fertilizer production. Then, prices of natural gas, a key input in producing nitrogen, soared in Europe due to high demand and low supplies.

Global urea prices this month topped $1,000 per tonne for the first time, according to BMO Capital Markets. Russia and China have curbed exports.

In the United States, nitrogen fertilizer supplies are adequate for applications before winter, said Daren Coppock, CEO at US-based Agricultural Retailers Association. Applying fertilizer before winter reduces farmers' spring workload.

But with prices so high, some farmers are delaying purchases, risking a scramble for supplies during their busiest time of year, Coppock said. Global fertilizer sales were worth $53 billion in 2020, and prices are at least 80% higher so far this year, according to Argus Media.

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