Montana State University Extension farm management specialist Andrew Swanson and soil fertility specialist Clain Jones addressed concerns about increasing fertilizer prices in a statement released on April 14. The two provided recommendations for agricultural producers facing higher input costs due to global disruptions and ongoing conflicts affecting supply chains.
Rising fertilizer prices are impacting farm profitability as wheat and grain prices have dropped significantly, while input costs remain high. Swanson said that although the United States produces most of its own nitrogen fertilizer, domestic prices are still influenced by international events. “Even though the U.S. produces the majority of its own nitrogen fertilizer, fertilizer prices are susceptible to global shocks, just like Montana wheat prices can be affected by supply conditions in Australia or Canada,” Swanson said.
According to Swanson, recent trade disruptions have led to urea price increases at New Orleans wholesale terminals from $360 per ton in February to nearly $650 per ton in March, with Montana urea prices rising from $700 per ton to about $1,000 per ton. He explained that each additional pound of nitrogen applied now needs to generate at least $1.09 of revenue through higher yields or protein premiums given current market conditions. “Golden Triangle prices for 12% protein winter wheat averaged $5.16 per bushel in February and have increased to $5.52,” he said.
Swanson suggested strategies such as prepaying local suppliers for potential discounts and exploring new margin protection insurance plans approved by the U.S. Department of Agriculture for select Montana counties that protect against both falling crop revenues and rising input costs.
Jones advised producers on optimizing spending through careful comparison of granular versus liquid fertilizers and using tools like MSU’s online small grains nitrogen rate calculator tailored with up-to-date cost data from sources such as the USDA Pacific Northwest Production Cost Report. He emphasized minimizing nutrient losses: “Soil testing in spring, using realistic yield goals when calculating nitrogen requirements and applying conservative nitrogen amounts near the time of seeding, followed by more in-season nitrogen only if spring rains increase yield potential, should also save on nitrogen costs,” Jones said.
The specialists also recommended practices like variable-rate application technology and incorporating legumes into crop rotations as ways farmers can reduce their dependence on synthetic fertilizers while maintaining yields.
Montana State University leads research funding efforts within the state with annual expenditures exceeding $288 million according to the official website (source). The university enrolls approximately 17,165 students evenly split between residents and nonresidents (source) and ranks among the top five percent of global universities according to rankings cited by MSU (source). As Montana’s land-grant institution focused on research, education, outreach—serving communities statewide—MSU extends its influence beyond state borders (source).
For more information or assistance with farm management decisions related to commodity markets or soil fertility questions—including precision agriculture techniques—producers are encouraged to contact Swanson or Jones directly.
