Home   News

Nebraska Corn Fertilizer Price Concerns Elevated Following Release of New Report

The Nebraska Corn Board (NCB) and Nebraska Corn Growers Association (NeCGA) – collectively known as “Nebraska Corn” – are crying foul after researchers at Texas A&M University released an economic analysis suggesting pending tariffs on nitrogen fertilizers will create shortages resulting in increased prices for farmers. Nebraska corn farmers have been concerned for several months as fertilizer prices have risen more than 80% for the upcoming growing season compared to 2021. The Texas A&M report validates farmers’ fears that fertilizer companies are artificially manipulating prices to the detriment of U.S. agriculture.

“As part of this study, we conducted an historical analysis going back to 1980 and found that fertilizer costs tend to go up when corn revenues increase,” said Dr. Joe Outlaw, lead researcher of the study. “Notably, these prices tend to go up exponentially even after accounting for natural gas prices and higher demand.”

The study noted the price of anhydrous ammonia, one type of nitrogen fertilizer, increased by $688 per ton – $86,000 for a 1,000-acre farm – from the end of 2020 through the end of October 2021.

The economic analysis has farmers worried about a petition by CF Industries with U.S. International Trade Commission to impose tariffs on nitrogen fertilizers imported from Trinidad and Tobago and Russia. CF Industries is one of the country’s leading nitrogen producers. Despite a widespread condemnation from ag groups, the U.S. Department of Commerce released a preliminary finding recommending tariffs.

“Costs of fertilizers are sky high and will continue to climb with the addition of the proposed tariffs,” said Andy Jobman, president of NeCGA and farmer from Gothenburg. “Nebraska’s farmers have been experiencing financial difficulties for the past several years due to low prices. High input prices are going to cause great financial harm to many operations after we finally thought we caught a break. High nitrogen prices are eliminating profitability for family farms.”

Click here to see more...

Trending Video

Ag Economy Barometer Breakdown, January 2022 Survey Results

Video: Ag Economy Barometer Breakdown, January 2022 Survey Results

Farmer sentiment weakened in January as the Purdue University/CME Group Ag Economy Barometer declined 6 points to 119, down from 125 a month earlier. This month’s decline leaves the barometer just three points higher than in November and is the second-lowest sentiment reading since July 2020. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from January 17-21, 2022. Purdue ag economist James Mintert breaks down the results in the January 2022 Ag Economy Barometer survey. The full report is available at