Fertilizer prices peaked this month and are now in decline with the June spot price in Tampa, Florida, for ammonia nitrogen fertilizer settled at $1,000 per metric ton, a 30 per cent drop from May's $1,425 per ton.
Southeast Asia and other places are seeing more buyers who are unwilling to pay the record high prices that were seen in April and May, and the cost of ammonia production has declined as European natural gas prices fell in the second quarter, said Green Markets analyst Alexis Maxwell in an interview withh Bloomberg news service.
A recent report from Texas A&M University shows higher input prices are having a larger impact on farmers than originally thought.
It said net cash farm income on the representative feed grain and oilseed farms is projected to decline by an average of $534,000 from 2021 to 2022 across the 25 feed grain and oilseed farms.
Representative wheat farms face an average reduction in net cash farm income of $399,000.
Representative cotton farms face an average reduction in net cash farm income of $716,000.
Rice farms face the largest reduction in net cash farm income per farm at $880,000 and a per acre reduction of $442.
It found that fertilizer costs increased by 133 per cent.
