After a period of relative stability, prices for key fertilizer components like nitrogen, phosphate, and potash have climbed steadily over the past month. Industry analysts point to several factors, including higher energy costs, supply chain disruptions, and reduced exports from major producers like Russia and China.
Faith Parum, an economist with the American Farm Bureau Federation says there are two main factors driving up the cost of fertilizer for farmers and ranchers, ““The big drivers are energy costs, mainly because nitrogen fertilizers rely on natural gas and so other countries have had decreased production due to conflict, as well as geopolitical disputes overall. There will just, again, be that uncertainty as you know, the world continues to move around through these geopolitical disruptions.”
Higher fertilizer prices don’t just affect farmers. The added costs often ripple down the supply chain — from grain and vegetable producers to grocery store shelves — potentially pushing food prices higher for consumers already feeling inflation in other areas.
Government agencies are monitoring the situation closely, and some agricultural groups are calling for temporary relief measures or subsidies to help offset the increased costs.
“Farmers really just need to be aware and monitoring the market ahead of the next year, and so staying flexible and planning for this volatility will help you know, manage higher input costs, as well as just being aware of higher input costs across the board,” said Parum.
While it’s too early to say how long this trend will last, experts warn that continued volatility in global markets could keep fertilizer prices elevated well into 2026.
