03/11/08 Fertilizer costs

Farm and Ranch March 11, 2008 The President of the Fertilizer Institute, Ford West, says there may be a drop in fertilizer demand this spring because of reduced corn plantings in the U.S. but that doesn't necessarily mean a reduction in fertilizer prices. West: "Forty-five percent of all fertilizer is used on corn therefore if we back off on some of our corn acres that will put some downward pressure on fertilizer prices. However, that could be balanced off by the fact we have to import. All fertilizer traded around the world is in dollar and that means since we import it is more expensive to import because of the value of the dollar. Transportation costs are up." At the recent Commodity Classic, Idaho Grain Producers Association President Matt Gellings, updated us on what he's seen fertilizer prices do just since we last discussed them at the Pacific Northwest Grains Convention in late November. Gellings: "The last time we spoke in Spokane we were really concerned about that and they have actually inched up another $100 a ton from that point." A number being tossed around at the Commodity Classic regarding nitrogen fertilizer prices come this fall was one-thousand dollars a ton. Oregon Wheat Growers League President Kevin Porter heard that number too. Porter recalled that his total production costs 15 years ago when he started farming were about 80 to 100 dollars an acre for wheat. Porter: "Now my fertilizer bill is going to be pretty nearly that. So that is a huge concern." The Fertilizer Institute's Ford West says increasing food demand around the world has been positive for prices U.S. farmers receive but it also means increased demand for fertilizer too. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.