Bulk NPK Decreasing in Price
Fertilizer prices have been decreasing in Iowa and around the world for the last 9 years. In Iowa decreases in cash bulk prices for fertilizers sold by the ton reveal that, on average, Nitrogen has decreased on a bi-weekly basis by $0.08, Phosphate $0.13, and Potassium by $0.16 from January 2011 to July 2017, all else equal. This data is reported by the US Department of Agriculture’s: Agricultural Marketing Service on a bi weekly basis, gaps are missing simply unavailable data points.
As of July 21, 2017, average prices were $228/ton for Liquid Nitrogen, $467/ton for MAP/DAP (phosphorus), and $362/ton for potassium. These values have all fallen compared to the same month in 2016 -26%, -9%, and -7% for N, P, and K, respectively. These decreases are unique over this time period, historically over an annual time period, fertilizer prices, although in flux, are relatively steady with a slight negative trend over time as can be witnessed in the figure below.
Preston Lyman is a Research Analyst with Decision Innovation Solutions (DIS). DIS is an Iowa-Based economic research firm which provides regular farm economics research and analysis to the Iowa Farm Bureau staff and members.
Want more news on this topic? Farm Bureau members may subscribe for a free email news service, featuring the farm and rural topics that interest them most!