Just when you thought nitrogen prices couldn’t go any higher…
The Commerce Department has reached a preliminary ruling regarding Russia and Trinidad and Tobago “dumping” urea ammonium nitrate (UAN) into the U.S. fertilizer market, deeming the practice unfair. This means a key form of nitrogen will be getting even more expensive as a result of tariffs and anti-dumping duties.
This finding has been welcomed by U.S. fertilizer firms, such as CF Industries Holdings Inc., who are fighting to stay competitive against imports. However, this strikes a tough blow for farmers already dealing with escalated fertilizer prices.
Quick definition: “Dumping” refers to a foreign producer selling products in the U.S. market at prices below the cost of production or below the sales price in the country of origin.
Fertilizer facts and figures:
- 9.15% – 127.19%: the range of dumping rates from various Russian fertilizer entities
- $52.07: the average increase in per acre nitrogen costs for 2022
- $0.32 per bushel: the amount corn farmers would need from the market or government to offset higher nitrogen prices
Soundbite: “Corn growers are already feeling the financial pressure from the high costs of nitrogen fertilizers, which will only increase once these tariffs are put in place. The expected price hikes and fertilizer shortages that the tariffs will create may cause farmers to change their planting rotations right before planting season.” – National Corn Growers Association President Chris Edgington, in conversation with AgriPulse