Lifestyle

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 significant concern next year.  Currently, the 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 (NH3) prices are about $440-$450 per metric ton.  

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Are small grains profitable?

Entering October, is it too late to plant small grains (wheat or possibly barley), and is it even profitable to do so? It is not too late, but with wheat at roughly $4.50 to $5.00, it is difficult to make wheat profitable. Most can justify planting wheat at $6/bushel. However, $4.50 corn is not much better. Planting wheat helps improve the crop rotation, reduce weeds, and may increase other crop yields by 10%. Wheat and other small grain crops like barley, cereal rye, oats are alternative crops. The market for barley and oats are fairly limited. Due to high test weight oats grown in Canada and a few breweries in Ohio, the oat and barley markets are slim. At around $12/bushel for cereal rye as a cover crop, cereal rye can be profitable with good yields.

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Farm Economy Suffering

Farmers are in a tough spot. Fertilizer prices are spiking, and crop prices are not high enough to cover the costs. The bright spots are on the livestock and dairy side, with much higher prices and profits. For grain farmers; with a late drought, yields and prices are not high enough to make much money.

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