High Nitrogen Prices
The cost of nitrogen fertilizers has gone way up this year. This is because anhydrous ammonia and other nitrogen fertilizers are made with natural gas. Methane, CH4 is reacted with atmospheric N2 at high temperatures and pressures on an iron catalyst to make ammonia. Anhydrous ammonia is now going for over $400 a ton. This is more than double the price a year ago.
Farmers apply high concentrations of nitrogen to increase yields of corn. Soybeans can fix nitrogen from the atmosphere with bacteria in their root nodules. It may make sense in these times of higher energy costs to go back to the system of crop rotation that was practiced before artificial fertilizers changed farming. The alternative to the use of artificially-produced nitrogen is to use manure or sewage sludge to fertilize crops. High crop yields require a high input of fertilizer.
It may be a good idea to do accurate soil tests to determine just how much fertilizer that is needed. It makes no business sense to apply more fertilizer than is necessary for a crop. Much of the fertilizer that has been over applied in the past has ended up in river systems and lakes, causing problems. Even ground water in some areas is contaminated with high levels of nitrates. Higher prices will force farmers to be more accurate with their application of fertilizers.
It is not just the price of nitrogen that is increasing. There may also be shortages of anhydrous ammonia this year because production is being cut back. The high price of natural gas is causing some fertilizer manufacturers to sell off their stock of gas for a profit on the market. The limited supply will no doubt drive the price of nitrogen even higher. Even with record high prices for crops, it may be hard for farmers to realize a profit this year with the rising price of fuel and fertilizer.
