TEXAS (KAUZ) – Texas A&M AgriLife reports that producers are seeing a sharp rise in fertilizer costs this spring.
Texas A&M AgriLife Extension Service economist Mark Welch said that fertilizer prices, which remained relatively steady early in the year, began climbing in March amid escalating conflict in the Middle East and rising energy prices.
According to Texas A&M AgriLife, nitrogen fertilizers, used for commodity crops like cotton, corn, sorghum, wheat, and rice, have seen some of the largest gains, with some varieties rising from about $840 per ton in late January to roughly $1,100 per ton in early April
Fertilizer production is closely tied to natural gas, making prices highly sensitive to energy markets.
AgriLife reports show that rising oil and gas prices, combined with supply disruptions and transportation uncertainty, have pushed fertilizer costs higher despite strong domestic production.
Economists with Texas A&M AgriLife do not expect fertilizer prices to decline quickly, even if geopolitical tensions ease, with Mark Welch saying that there are long-term impacts that will keep costs elevated.
That uncertainty is raising concerns for the 2027 crop year, when producers may face even higher input costs from the outset, according to Texas A&M AgriLife.
More on the surge of fertilizer prices and the impact on producers can be read in Texas A&M AgriLife’s “Fertilizer price surge squeezes Texas producers” by by Karn Dhingra
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