In recent months, nitrogen fertilizer prices have increased, reaching roughly the same levels as in 2017. To achieve lower nitrogen fertilizer costs in 2018 than in 2017, many farmers will need to lower rates, particularly those who apply most of their nitrogen in the spring.
Farmers who apply nitrogen above agronomically recommended levels may consider reducing rates as a means of cutting costs while at the same time increasing returns from corn production.
Increasing Anhydrous Ammonia Prices
According to the March 29th Illinois Production Cost Report, anhydrous ammonia prices averaged $522 per ton in Illinois. This $522 level is over $100 higher from September 2017 levels when anhydrous ammonia prices averaged $401 per ton.
Nitrogen fertilizer costs have increased since the fall of 2017, with March 2018 prices near levels in 2017. Farmers who apply most of their nitrogen in spring likely will not have lower 2018 nitrogen fertilizer costs less than 2017 costs if they apply roughly the same rates in 2017 as in 2018. Farmers applying above MRTNs may consider reducing rates as a means or reducing costs while at the same time increasing expected returns from corn production.
To get more details about the increase in nitrogen prices nad 2018, fertilizer costs, check out the details here.