Why High Fertilizer Prices?
After a late 2025 drought and lower crop prices, farmers are looking ahead to the 2026 crop year. High volatile fertilizer prices will be a major concern this next year. Currently, DAP retail price is $926 per metric ton up from $580 in January. DAP or diammonium phosphate is 18% nitrogen and 46% phosphate (18-46-0). The retail price for MAP (mono ammonium phosphate) is $921 per ton. Potash or potassium (60% potash or K, 0-0-60) prices are about 24% higher than last year at $483-485 per ton. Some global spot prices are $350-$360 per ton. Ammonia prices (NH3) are about $440 to $450 per metric ton. Why are prices too high? There are a number of factors but the major one are supply disruptions due to the Russia/Ukraine war, China cutting back on exports, high tariff costs, port disruptions, high global demand and competition for fertilizer, and still high energy costs which is used to make most nitrogen fertilizer. First, the Russian war with Ukraine has disrupted nitrogen (N) ferti...