Fertilizer Prices Rise Again, Squeezing Farm Margins

According to a Market Intel report from the American Farm Bureau, fertilizer costs are once again squeezing farm budgets. Back in 2022, prices hit record highs from energy shocks and supply disruptions, and while things eased in 2023 and 2024, they’re climbing again here in late 2025 — with levels expected to stay elevated into 2026.

That’s a tough hit for farm finances. Crop receipts are shrinking, especially for row crops, leaving margins thin or even negative. Volatility is also back, with winter swings in natural gas and shifting Chinese export policies creating even more uncertainty.

The USDA projects production expenses rising in 2025, with fertilizer and lime making up 7% of the total. Phosphate prices are leading the climb, nitrogen is swinging month to month, and potash is rising on trade risks. Add in higher labor, rent, and livestock costs, and the pressure grows.

Bottom line: Fertilizer remains one of the most volatile expenses, and even small price shifts can make or break farm income.

For the full report, visit: https://www.fb.org/market-intel/fertilizer-outlook-global-risks-higher-costs-tighter-margins