Midwest farmers are struggling with higher fertilizer prices

Making money farming is always a risky proposition, but a giant spike in fertilizer prices this year will make it even more difficult.

The cost of phosphate and nitrogen based fertilizers, the kinds that are applied to corn, soybean and hay fields, are seeing jumps of 80% to 200%.

Manufacturers are blaming a variety of things for the jump. Raw material prices are up, and natural gas, also used to make fertilizer, is more expensive. Hurricane Ida shut down production in the U.S. last year, while power outages in China cut back manufacturing capacity there.

“Prices are all higher, it’s just crazy,” said Bill Taylor, who farms 2,500 acres of corn and soybeans in central Missouri near Sedalia. “Guys like me are talking about reducing the amount we apply, or maybe delaying to see if prices come down. It’s going to mean lower profits, or not even being able to break even.”

Yet fertilizer company officials say they don't expect the price increase to have much effect on sales.