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Growing Demand for Fertilizer Keeps Prices High

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Abstract

Steadily growing global demand for grain crops has generated higher crop prices and increased demand for fertilizers, particularly imported fertilizers. As corn prices remain high, U.S. corn growers are expected to plant 97.3 million acres of corn in 2013, representing the largest planting since 1936.1 This large planting is likely to translate into another year of high fertilizer prices. However, other factors such as changing input prices often have an impact on fertilizer prices. The severity of the drought in 2012 caused an unanticipated decline in the demand for fertilizer leading to large price declines. Looking at trends in the Bureau of Labor Statistics (BLS) import price index for fertilizer can help shed some light on the changing price dynamics.

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2013-05-01

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fertilizer; crop prices; demand; imports; price index

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Government Document

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unassigned

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