The guaranteed analysis of a fertilizer shows how much nitrogen, phosphorus, potassium, and other plant nutrients it has in amounts big enough to meet state law. Every fertilizer material that is sold in New Mexico must have a guarantee that it will work.
Nitrogen (N), phosphorus (P2O5), and potassium (K2O) are all nutrients in the fertilizer. The total cost and the percentage of each nutrient in the fertilizer are used to figure out how much each pound costs. There should be the most important thing to think about when choosing which fertilizer source to use: how much each pound of nutrients costs.
If a fertilizer has more than one plant nutrient in it, the cost of one or more nutrients must be taken into account. Cost: This cost is taken out of the total price of fertilizer. The cost per pound of the nutrient in question is then calculated from the cost per pound of the fertilizer.
To figure out the cost of liquid fertilizers (solutions or suspensions) that are sold by the gallon, you need to know how much they cost, how dense they are, and how much of each nutrient they contain. If the liquid fertilizer is sold by the ton, the calculations are the same as for dry fertilizer.
Always use soil testing to figure out what fertilizer is best for your soil and crop.
Among other things, the 1978 Fertilizer Act of New Mexico says that the guaranteed analysis of every fertilizer material sold in the state must be written in a clear and visible way. There are percentages of nitrogen (N), available phosphorus (expressed as percentage P2O5), water-soluble potassium (expressed as percentage K2O), and other nutrients that are in amounts that meet state law.
Fertilizer Act: A commercial fertilizer is any substance that has one or more plant nutrients, is used for its plant nutrients, and is supposed to help plants grow (except unmanipulated animal and vegetable manures, marl limes, limestone, wood ashes, gypsum, and other exempt products). This word is used to describe a commercial fertilizer that either 1) has important amounts of only one of the three main plant nutrients: nitrogen, phosphoric acid, and potash; or 2) has about 85% of one of these nutrients in the form of one compound; or 3) is made from a natural source and processed in a way that makes the plant nutrient pure and concentrated.
Because the guaranteed analysis says that phosphorus and potassium are both oxides (P2O5 and K2O), these plant nutrients are mixed with other chemicals in the fertilizer. If you want to make diammonium phosphate, the chemical formula is (NH4)2HPO4 (NH4)2. DAP is supposed to be 18 percent N, 46 percent P2O5, and 0 percent K2O, but it doesn’t have any P2O5. This wording comes from when chemists used to light up fertilizer samples and weigh the oxide that was left behind. Soil test recommendations for adding P and K to soil have been changed to account for this oxide expression.
To figure out how much each pound of elemental P or K costs, the guarantee must be changed from P2O5 to P and K2O to K. (N doesn’t need to be changed because it is already expressed on an elemental level.)
In terms of fertilizer prices, what is going on?
Over the last year, farmers have seen fertilizer prices rise, and there is little to no hope that prices will go down in the near term. When Matt Miles, a farmer who grows a lot of different crops, used urea for the 2021 growing season he paid $400 per ton. Miles has to pay $1,100 per ton for wheat in 2022, which is a 175 percent price rise. A lot more money will be spent on fertilizer in 2022 than 2021. He’ll have to pay an extra $180 for each acre.
Planning has been difficult because the price of fertilizer has gone up so much. If you’re a farmer now, you’re going to have to think about more things on top of the ones you already have to think about when you start planting. As a first step, they need to figure out which crop will be the most cost-effective one. Farmers have to think about whether they should get manure or buy synthetic fertilizer. They should figure out how to get the most out of the fertilizer they spend money on.
It’s time for the industry to look ahead to the 2022 growing season. Farmers, analysts, and fertilizer companies all have their own ideas about what’s going on in the market.
It is caused by a lot of things. FOOD AVAILABILITY AND COST OF FOOD
A December 9 Reuters article says that fertilizer prices around the world have hit record highs this year, in part because of rising prices for the natural gas used to make them and severe storms in the United States that stopped production.
The price of fertilizer may seem to be going up because there isn’t enough fertilizer in the United States. Kreg Ruhl, senior market manager at Growmark, an agricultural supply cooperative in Illinois, doesn’t think that’s the problem. There is fertilizer in the United States, but it costs a lot because of the fluctuation of the world energy market, which makes prices go up and down, he says. Ruhl thinks fertilizer prices will stay high until the market is evened out.
Prices on all inputs, not just fertilizer, are at record highs, says Purdue University researcher and Ag Economy Barometer author Michael Langemeier. Langemeier says prices have risen at least 12 percent across commodities over the last few years. He says that some input prices are more or less volatile over time than other prices. In fertilizer, the price of nitrogen sources is linked to the price of oil. The more volatile the oil market is, the more the price of fertilizer will go up and down.
The Ag Economy Barometer is a survey that Langemeier and another researcher, James Mintert, run every month. It asks farmers to choose from a range of percentages and predict how much they think all commodity input prices will rise in the next year.
In September, one-third of producers who were surveyed said that commodity input prices were in the highest possible range, which at the time was 10% or more.
“12 percent or more” was added to the survey in November because the price of fertilizer rose more than 120 percent. This pushed farmers’ average input costs to record highs. Then, more than half of people thought the price would rise by more than 12 percent. This is how it looked at the time:
“Although a lot of attention has been paid to this year’s huge rise in fertilizer prices, almost all other input costs, from farm machinery to seed and fuel, are also on the rise,” says the Ag Economy Barometer.
As fertilizer prices keep going up into the 2022 production year, the Ag Economy Barometer plans to keep adding a “15 percent or more” option when farmers look at the prices of commodity-wide inputs.
Fertilizer prices put a lot of pressure on the market in 2022.
The cost of nitrogen fertilizer will rise, which will have an impact on the corn market in 2022. It gets more and more expensive for farmers to grow corn, which may make them think about changing their crop rotations so that they can save money. Patrick Quaid, a commodities trader for R.J. O’Brien & Associates, says that production costs are the most important thing to think about.
If farmers decide to change their crop rotation for 2022, they might switch to a crop that doesn’t need as much nitrogen fertilizer, like soybeans. Besides, farmers have to think about what would happen if all the farmers switched to soybeans. Corn prices might rise with demand, which could make the cost of fertilizer less important.
In “2022 Planting Decisions, Nitrogen Fertilizer Prices, and Corn and Soybean Prices” by agricultural economists at the University of Illinois, they say fertilizer costs make up 48% of the difference between corn and soybean costs from 2000 to 2021. “The figure for 2022 is 49%.” As phosphate and potash prices change, more corn and soybean acres use them. Corn and soybeans make more money than they used to when nitrogen fertilizer prices go up or down.
People talk about the short- and long-term effects of high fertilizer prices.
Short-term, farmers are worried about how much fertilizer costs. In the long run, the prices may have a big impact on the supply chain because they are rising quickly. With crop rotations being changed by farmers around the world, things like export prices and trading patterns may be very different for years to come. This could also change the amount of labor and materials needed to import and export.
During October, producers can start talking to their suppliers about the next season and get ready for it. People have been able to work out some deals, but in other cases, suppliers haven’t been able to say how much they’ll charge or when they’ll arrive.
For the next planting season, farmers are looking for ways to get their crops to get the right amount of nutrients, like fish and meat.
Synthetic fertilizer isn’t good for your plants. What is a good, healthy alternative? A return to manure as a fertilizer is what some people think is the best thing to do. When manure is chosen correctly, it can help restore and improve the health of the soil. This is because manure is rich in nutrients that help plants grow.
Corn farmer Dan Luepkes says: “It’s natural fertilizers vs. synthetic fertilizers, and that’s what it comes down to.” Because natural fertilizers don’t have salt in them, they’re better for the plant because they can be used more quickly. Chicken manure also has some extra micronutrients and calcium that you won’t get in synthetic fertilizers unless you buy all the extra micronutrients that they don’t already have.
A professor at Iowa State University says that using the right kind of manure can also improve the health of the soil. Even though it’s convenient to use manure from your own barnyard, soil tests can help you figure out what your soil needs. Then, you can buy the right manure to meet those needs. This makes for better cropland, which is something synthetic fertilizer can’t do on its own, he says. This is what this does.
Using technology to get the most out of the food you have.
Once a farmer has fertilizer, he needs to use it to its fullest potential to get the most out of his money. Variable-rate technology allows producers to spread and apply fertilizer in specific areas so that less is wasted. This means that less fertilizer is wasted.
Farmers have more flexibility and accuracy when they can set up zones automatically, says Matthew Lau, the global product manager of scripting for The Climate Corp. “It also lets growers try out different layers and hypotheses and compare them to see which one they think will be the best choice for the next season,” he says. Because every year is different, we know there are a lot of things we have to deal with.
FARMERS WANT THE GOVERNMENT TO HELP.
A group of 6,000 farmers, called the Family Farm Action Alliance, asked the U.S. Department of Justice to see if there is a link between the rising prices of fertilizer and manipulation by fertilizer companies. There are currently no fertilizer companies that manipulate the markets, like Mosaic. They say that the price of fertilizer has gone up because of factors in the global economy.
As an expert on food industry consolidation, Philip Howard, a professor at Michigan State University, says that the way this industry is set up could really hurt farmers.
Sen. Chuck Grassley also sent a letter to Attorney General Merrick Garland on December 16 asking that fertilizer prices be looked into, as well. That many farmers had raised concerns about possible anti-competitive behavior and market manipulation, he said.
“This year, the price of fertilizer has gone up a lot. Nitrogen fertilizers have more than doubled in price, anhydrous have gone up by 131%, urea has gone up by 110%, and potash has gone up by 100%. When it comes to anhydrous fertilizer, the price rose 26% in October 2021 alone “According to the letter, “It’s been a good month,” says the letter.
According to the letter, there aren’t many people in the fertilizer market. Potash is controlled by two companies, and nitrogen-based fertilizers are controlled by four companies.
