Why doesn't the US make more fertilizer?

According to USDA, fertilizer prices have more than doubled since 2021 due to Putin's price hike, a limited supply of the relevant minerals and high energy costs, increased global demand and agricultural commodity prices, reliance on fertilizer imports, and lack of competition in the fertilizer industry.

Can the US produce fertilizer?

The U.S. nitrogen fertilizer production sector has undergone substantial changes over the past 40–50 years, influenced by a combination of agricultural market conditions, farm and bioenergy policies, and technological innovations for extracting natural gas—the primary input into the production of nitrogen fertilizer.

Why is there a shortage in fertilizer?

Experts say the shortage is being caused by supply chain issues as well as the conflict between Russia and Ukraine. Russia is one of the top fertilizer exporters in the world.

Where does the US get most of its fertilizer?

Canada provides 83% of the potash used in the U.S.; Russia and Belarus provided 12% used in the U.S. in 2021 (see Figure 2). The American dependence on nitrogen and phosphate imports is much smaller, 12.5% and 9%, respectively.

Is USA self sufficient in fertilizer?

For nitrogen and phosphate, the U.S. is self-sufficient and retains most of the material for domestic consumption. The U.S. farmer relies heavily on Canada for potash production, but this relatively close import mitigates some of that risk.

The CEO of one of the world's largest fertilizer producers on the growing global food crisis

What country is the largest producer of fertilizer?

China was by far the country with the largest production, with an output of 28.9 million metric tons of nutrient.

Are we going to run out of fertilizer?

But with the world's population on track to reach 10 billion by 2050, current fertilizer production methods can't keep up.

Who supplies the US with fertilizer?

The top producers of the major components of fertilizer include China, Russia, Canada and Morocco, with Belarus also providing a significant share of potash.

Is Russia still exporting fertilizer?

The Russian government's decision to suspend fertilizer exports will threaten supplies for farmers in the European Union, South America and Africa while eventually pushing up prices that U.S. farmers must pay, according to analysts.

Why is fertilizer so expensive right now?

Why did fertilizer prices increase in 2021? Both supply- and demand-side factors contributed. On the supply side, U.S. natural gas prices doubled between the summer of 2020 and the end of 2021, which significantly raised the cost of nitrogen production.

Which country makes the best fertilizer?

Russian Federation is the top country by NPK fertilizers production in the world. As of 2019, NPK fertilizers production in Russian Federation was 7.57 million tonnes that accounts for 30.31% of the world's NPK fertilizers production.

Does the US buy fertilizer from Russia?

In the US, the share of Russian supplies in total imports is 6% for potash, 20% for diammonium phosphate and 13% for urea.

What percentage of fertilizer does the US import?

Of the three principle fertilizer types, the United States imported more than 50 percent of U.S. nitrogen supplies and 85 percent of U.S. potash supplies, making these fertilizer imports especially important for U.S. crop production.

Why does Russia produce more fertilizer?

Russia is a big exporter of fertilizer and its raw materials. The country's exports account for 18% of the world's potash market, 20% of ammonia sales and 15% of urea. Plus, a lot of the natural gas that is the most expensive part of making nitrogen fertilizers comes from Russia.

How much US fertilizer comes from Russia?

In FY 2021, Russia alone accounted for over 17 percent of total MOP (muriate of potash) imports and nearly 60 percent of NPK (nitrogen, phosphorous and potassium) imports. In the US, the share of Russian supplies in total imports is 6% for potash, 20% for diammonium phosphate and 13% for urea.

Will fertilizer prices go down in 2022?

Fertilizer prices have risen nearly 30% since the start of 2022, following last year's 80% surge. Soaring prices are driven by a confluence of factors, including surging input costs, supply disruptions caused by sanctions (Belarus and Russia), and export restrictions (China).

How long will fertilizer prices stay high?

Price Hike

The rising input costs, which account for 15% of total cash costs on U.S. farms according to the AFBF, are expected to remain high through spring 2022 due to a shortage of fertilizer supply.

How much do farmers spend on fertilizer?

USDA is currently surveying farmers on their 2021 expenses, so the most recent data available is for 2020. It found that U.S. farmers spent $24.4 billion on fertilizer, lime and soil conditioner, about $1.1 million more than the previous year.

Will fertilizer prices continue to rise?

Prices of Most Fertilizers Continue Rise, as Wheat Prices Climb on Supply Concerns. DTN writer Russ Quinn reported earlier this week that, “According to retail fertilizer prices tracked by DTN for the fourth week of April 2022, prices are somewhat mixed to end the month of April.

Will phosphates run out?

All the most reliable estimates show that we have enough phosphate rock resources to last between 300 and 400 more years.”

Does the United States import fertilizer?

Today the U.S. imports over half of the nitrogen and 80 percent of the potash fertilizer used on its farms. The picture is different for phosphate, most of which comes from domestic production.

Who is the largest fertilizer company?

Leading fertilizer companies globally 2022, by market capitalization. As of February 2022, Wesfarmers was the largest fertilizer company worldwide based on market capitalization, at 43.5 billion U.S. dollars.

How bad is the fertilizer shortage?

“Prices are more or less 78 percent higher than average in 2021, and this is cracking up the production side of agriculture. In many regions farmers simply can't afford to bring fertilizers to the farm, or even if they could, the fertilizers are not available to them.