(WKYT) – Kentucky farmers are reporting that high fertilizer prices are adding to financial pressure already caused by diesel costs.
A University of Kentucky professor says conflict in the Strait of Hormuz has driven up fertilizer prices on the world market.
Mark Pickett, sales director for Kentucky Fertilizer, said prices for urea have climbed sharply.
“You’ve seen increase of over thirty percent just in urea alone. It’s been probably forty-five to fifty percent, sometimes jumping as much as two or three hundred dollars a ton in like short spans,” Pickett said.
Urea is used to grow crops including Kentucky corn. Farmers say they have to buy it to plant, which is cutting into already thin margins.
Overseas conflict affects local supply
Grant Gardner, a UK Ag Extension professor, said Kentucky, like most of the United States, imports fertilizer, including potash from Canada, nitrogen and phosphorus from overseas via the Mississippi River. He said that makes the state vulnerable to overseas conflict.
“When you cut off a key choke point of fertilizer exports, that’s going to raise the price on the world market, and what that does is that raises the price on producers at home,” Gardner said.
Farmer Jay Rankin said diesel costs are compounding the strain during harvest. He said even with good yields, turning a profit has been difficult.
“A lot of times we’re lucky to break even,” Rankin said.
State officials respond
In an interview Thursday, Agriculture Commissioner Jonathan Schell said he is paying about 20% more for fertilizer this year. He said there is not much the state can directly control but added that the state’s economic development office is looking at ways to pursue Kentucky-produced nitrogen.
“We hope to see those projects move forward and see some real impact of it next year leading into that season,” Schell said.
Schell said he is hopeful Kentucky-made nitrogen could help lower prices. He said he has talked with federal officials as the Attorney General and the U.S. Department of Agriculture examine fertilizer market consolidation.
Gardner said he believes crop prices are moving in the right direction. Despite high fertilizer and diesel costs eating into margins, Gardner said more farmers could turn a profit this year than last.