AGGRAND:
Over 3 to 1 lower input cost per acre compared with chemical fertilizers
Increased yields and higher quality crops
CHEMICAL FERTILIZER
COSTS OF CHEMICAL FERTILIZERS INCREASING
The ever- increasing cost of oil and natural gas has affected everyone, but it has completely overwhelmed the agricultural community. The major raw materials used in the the production of fertilizer are hydrocarbon sources (mainly natural gas), and because the price of natural gas is influenced by rising crude oil prices as industrial and commercial users substitute among energy sources, this planting season has been especially trying due to spiking fertilizer costs.
The cost of fertilizer has been rising even more dramatically than fuel prices. According to the U.S. Department of Agriculture, farmers paid an average of 65% more for fertilizer in April 2008 than they did the previous year. Add higher fuel prices to the mix, and costs for farmers have been overwhelming. Many farmers who have traditionally used chemical fertilizers can no longer afford them and simply go without. For example, a Carleton, Minn. farmer used chemical fertilizer to plant about 100 acres of corn on his farm in 2007, but he couldn't see the point this year considering the expense.
Nearly every type of fertilizer product available has increased in price, with some increasing by nearly 500%. The cost of commercial fertilizers is even more stunning when viewed over a five-year period. The following represent trends seen by farmers nationwide:
~~~ A ton of nitrogen fertilizer that cost $200 in 2003 now sells for $800 -- a 400% increase.
~~~ A ton of phosphate fertilizer that cost $240 in 2003 now sells for $1,199 -- a 500% increase.
~~~ A tone of potassium fertilizer that cost $144 in 2003 now sells for $700 -- a 450% increase.
