Have You Locked In Your Fertilizer for 2021?
It sure has been nice to see corn prices rally about one dollars bushel. Looking at history when corn prices rally, fertilizer prices of N,P and K also increase. Fortunately a lot of farmers were able to get their dry fertilizer applied this fall. In areas of Minnesota where it is approved many got their anhydrous ammonia on this fall too. With most retailers, at least with my coop I now have the option to pay for it this fall or early January for income tax management purposes. The point is the price or cost of the fertilizer is locked in.
If you do not have your fertilizer prices locked in you might want to talk with your retailer or supplier. I remember a number of years ago I was talking with University of Minnesota Extension Educator Brad Carlson about the tendency of fertilizer prices to follow corn prices higher. Brad said he was talking with someone in the industry about fertilizer prices. He was told in a round about way or, it was implied that the fertilizer companies figure that a certain percentage of the price of a bushel of corn should be theirs for fertilizer costs.
Brad was not told what that percentage was. I am sure there are other factors involved in determining what fertilizer costs, but it sounds reasonable that fertilizer companies get paid more when corn prices are high. That is true of many other costs too. When farmers get a higher price for corn everyone wants a "piece of the action." That includes higher land rent, herbicide and all other inputs. So, talk with your fertilizer supplier if you do not have it locked in!