Ag economist concerned anhydrous ammonia prices could eclipse $2k per ton next year
An ag economist worries anhydrous ammonia prices could eclipse $2,000 per ton next year.
Gary Schnitkey with the University of Illinois says several factors point to further upward price pressure including the war in Ukraine, anticipated reductions in nitrogen fertilizer produced in the European Union, and countries outside the EU reducing nitrogen fertilizer production to provide Western Europe with natural gas.
“All of those things lead to more nitrogen fertilizer issues coming up as we move into the 2023 growing season.”
Anhydrous ammonia prices are already at record levels, but if Russian fertilizer exports go completely off the market.
“I mean, it could be over $2,000 per ton. Hopefully that doesn’t happen, but we do stand quite a bit of risk here right now for natural gas and nitrogen supplies.”
Schnitkey encourages farmers to begin budgeting for 2023 but acknowledges it will be a while until prices for next year can start getting locked in.