By Javed Iqbal and Aaron Nygren et.al
As Nebraska corn producers gear up for side-dress nitrogen applications this season, many are facing a new challenge: a tightening fertilizer supply chain. According to recent market insights, the North American urea ammonium nitrate (UAN) and urea markets are experiencing a convergence of disruptions that could affect availability and pricing through the remainder of the growing season.
What’s Driving the Shortage?
Josh Linville, vice president of Fertilizer at StoneX, attributes the current shortage to several overlapping factors. First, the extended fertilizer application window due to a dry fall has led to increased early spring demand. Compounding this issue, unexpected shutdowns at nitrogen production facilities and reduced import volumes have left supply chains unable to keep pace. Meanwhile, more UAN has been shipped overseas, limiting domestic availability.
As a result, UAN shipments originally scheduled for April and May have already sold out in many regions. Retailers are now attempting to secure June shipments at elevated prices, hoping to stay ahead of the shortage. This disruption is putting pressure on Nebraska farmers who rely heavily on UAN solutions for side-dress applications during key vegetative growth stages.
Urea Prices Climb, Ammonia Gains Interest
With UAN in short supply, many growers are turning to granular urea as an alternative. However, the surge in demand has pushed urea prices up by nearly $100 per ton in just over a week. While urea is more flexible in application, it can be more prone to volatilization if not incorporated properly — particularly under warm, dry conditions common during Nebraska’s side-dress window.
Anhydrous ammonia is also drawing attention as a backup strategy. However, ammonia application requires specialized equipment and careful management to avoid root injury and timing conflicts. Farmers considering ammonia for in-season applications should weigh the agronomic fit carefully and ensure proper safety protocols are in place.
Strategic Considerations for Nebraska Producers
Given these evolving market conditions, growers are encouraged to take a proactive approach:
- Communicate early with suppliers to confirm product availability and delivery timelines.
- Evaluate fertilizer options based on current field conditions, equipment and agronomic goals.
- Consider using enhanced efficiency fertilizers (EEFs) like urease or nitrification inhibitors to reduce potential N loss.
- Incorporate soil nitrate testing and canopy sensing tools to fine-tune in-season N rates.
A Look Ahead
As side-dress season progresses, UAN prices typically decline, but current market trends suggest ongoing supply constraints. This reinforces the need for diversified nitrogen strategies and adaptive planning. Nebraska corn producers should consider alternatives like urea and anhydrous ammonia when UAN is limited, accounting for each product’s application and efficiency needs. Enhanced efficiency fertilizers (EEFs) can help retain nitrogen longer in the root zone. Using soil nitrate tests and canopy sensing can guide in-season N decisions. Close coordination with suppliers and real-time field data will be essential for balancing yield goals, fertilizer efficiency and economic risk amid supply uncertainty.
Source : unl.edu