Fertilizer shortages can result in a spring battle on North American farms

November 24 (Reuters) – Global nitrogen shortages are pushing costs to document ranges, prompting U.S. farmers to delay purchases and improve the danger of a spring battle to use the nutrient of the crop earlier than the planting season.

Farmers apply nitrogen to extend corn, canola, and wheat yields, and better fertilizer prices may translate into increased meat and bread costs.

World meals costs peaked in 10 years in October, based on the United Nations meals company, led by will increase in cereal crops corresponding to wheat and vegetable oils.

The Texas Arctic eruption in February and Hurricane Ida in August disrupted fertilizer manufacturing within the United States. At the time, pure gasoline costs, a key enter in nitrogen manufacturing, soared in Europe on account of excessive demand and low provide. Global urea costs this month topped $ 1,000 a tonne for the primary time, based on BMO Capital Markets. Russia and China have slowed exports.

In the United States, nitrogen fertilizer provides are appropriate for pre-winter functions, mentioned Daren Coppock, normal supervisor of the U.S. Agricultural Retailers Association. The utility of fertilizers earlier than winter reduces the spring workload of farmers.

But with costs so excessive, some farmers are delaying purchases, risking a battle for provides throughout their busiest time of 12 months, Coppock mentioned.

Global fertilizer gross sales have been value $ 53 billion in 2020 and costs are no less than 80 % increased thus far this 12 months, based on Argus Media.

Typically, MKC, a Kansas agricultural cooperative, sells fertilizers to farmers to pay them prematurely with months of supply on the highway, giving producers certainty a couple of key expense.

With rising costs, MKC has diminished its pay as you go gross sales as a precaution.

“You do not know what the value might be. It’s put a number of retailers in a tough spot,” mentioned Troy Walker, MKC’s director of retail fertilizers.

Delaying fertilizer purchases till spring runs the danger of additional congestion within the provide chain, as farmers rush to use fertilizer and plant seeds throughout a decent window.

“There will be a lot of people waiting and seeing it,” Coppock mentioned. “(But) if everyone seems to be struggling within the spring to get sufficient, somebody’s corn will not be coated.”

Wisconsin farmer Jim Zimmerman determined to chew the bullet and safe all of his fertilizer for spring, this 12 months.

“What worries me are next year’s prices,” Zimmerman mentioned. “It may worsen.”

Nutrien Ltd, the most important agricultural provider within the United States, has gotten much less nitrogen fertilizer than traditional for spring supply as a result of producers are making it much less out there, mentioned Jeff Tarsi, the corporate’s senior vp of retail. Sales to farmers are more likely to happen nearer to spring than traditional, he mentioned.

The solely nitrogen product that’s falling quick in North America is urea ammonium nitrate (UAN), mentioned Kreg Ruhl, crop nutrient supervisor at Illinois-based Growmark Agricultural Cooperative. UAN is a liquid kind that’s handy for farmers to use.

The U.S. International Trade Commission is conducting an anti-dumping investigation into UAN of Russia and Trinidad and Tobago, on the request of U.S. producer CF Industries.

Importers are reluctant to e-book shipments in 2022, as a result of they might must pay again charges if CF wins their case, Ruhl mentioned.

Farmers may scale back their fertilizer wants by planting extra soybeans and fewer corn, however there may be little proof that many plan to take action.

The U.S. Department of Agriculture predicted that U.S. corn plantations would decline to 92 million acres in 2022, from 93.3 million in 2021.

Waiting till spring to purchase fertilizer may disappoint some farmers, mentioned Matt Conacher, senior director of fertilizer at Federated Cooperatives Limited, a Canadian wholesaler.

“My recommendation is that if you may get your fertilizer now, do it.”

from https://vegetablesnow.com/fertilizer-shortages-can-result-in-a-spring-battle-on-north-american-farms/

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