DTN writer Russ Quinn reported last week that, “All retail fertilizer prices continued to decline in the third full week of March 2023, according to sellers surveyed by DTN. Prices have been on a steady march lower since the beginning of the year.
“All eight of the major fertilizer prices were once again lower compared to last month. Four of the eight fertilizers had a sizable price decline, which DTN designates as anything 5% or more.
“Leading the way lower was UAN28. The liquid nitrogen fertilizer was 9% lower compared to last month with an average retail price of $429 per ton. Anhydrous was 8% less expensive than a month ago with an average price of $1,036/ton.”
Quinn added that, “UAN32 was 7% lower compared to a month earlier and had average price of $514/ton. Urea was 6% less expensive compared to the previous month with an average price of $627/ton.”
The DTN article explained that, “All fertilizers are now lower by double digits compared to one year ago. 10-34-0 is 16% less expensive, DAP is 19% lower, MAP is 20% less expensive, potash is 24% lower, UAN32 is 26% less expensive, both anhydrous and UAN28 are 32% lower and urea is 36% less expensive compared to a year prior.”
Recall that a FAPRI Baseline Update last week pointed out that, “Higher fertilizer, fuel and feed costs contributed to a very sharp increase in farm production expenses in 2022.
“A smaller increase is projected in 2023, and lower prices for some inputs result in a reduction in production costs in 2024 and 2025,” the report said.
In its monthly Agricultural Prices report last week, the USDA’s National Agricultural Statistics Service (NASS) indicated that, with respect to prices paid by farmers:
Fertilizer: The index for February, at 119.4, is down 4.7 percent from January and 6.4 percent from February a year ago. Since January, prices are lower for nitrogen, mixed fertilizer, and potash & phosphate.
Monthly Ag Prices, @usda_nass#Fertilizer: The index for February, at 119.4, is down 4.7 percent from January and 6.4 percent from February a year ago.
Chemicals: The February index, at 141.2, is unchanged from January but up 23 percent from last February.
Fuels: At 93.6, the February index is down 2.3 percent from January and 2.3 percent from February 2022. Compared with January, prices are lower for diesel and LP gas but higher for gasoline.
And in its weekly Grain Transportation Reporton Thursday, the USDA’s Agricultural Marketing Service noted that, “According to the Energy Information Administration (EIA) data, for the week ending March 27, the U.S. average diesel fuel price was $4.128 per gallon—down 5.7 cents from the previous week and down 105.7 cents from the same week last year.
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
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