Fertilizer Uncertanties and Tight Margins

Among the list of input costs that growers need to consider each and every year is the cost of fertilizer…and that can be a wild card.

Andrew Wright, Assistant Professor and Extension Economist for Texas A&M AgriLife…

“I think that it’s important that when we talk about fertilizer prices, we think in terms of relative prices. I think we need to ask the question, how expensive is fertilizer relative to the price of the commodities that we grow with it.”

Wright says there is a set of fundamental supply and demand factors always at play adding that fertilizer and the inputs that go into fertilizer production are global commodities…

“Growers already know fertilizer is probably going to be more expensive this year, especially relative to commodity prices, at least relative to cotton prices. So growers are likely going to be in for another year of tight margins, prices near breakeven. So I think this is a year to be strategic about changes to fertilization level.”

If you’re considering cutting back, he encourages you to look at that reduced cost and compare it to what you could possibly lose in revenue.

“I would encourage growers, don’t make any decisions in the short-term that might hurt progress towards long-term goals.

Thank you to the National Cotton Council for the interview, again Andrew Wright, Texas A&M AgriLife.