Economics
Nancy Kavazanjian Nancy Kavazanjian
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Topics: Agriculture US, Economics, Fertilizer, Trade (Commodities),

New Economic Analysis Has Farmers Raising Concerns about Looming Tariffs on Nitrogen Fertilizers

(January 12, 2022)– A new economic analysis released today by researchers at Texas A&M University has corn growers raising concerns that pending tariffs on nitrogen fertilizers will create shortages and cause prices to increase even more for farmers, according to the National Corn Growers Association. “As part of this study, we conducted an historical analysis going back to 1980 and found that fertilizer costs tend to go up when corn revenues increase,” lead researcher Joe Outlaw, Ph.D., noted. “Notably, these prices tend to go up exponentially even after accounting for natural gas prices and higher demand.” The study notes that the price of one type of nitrogen fertilizer, called anhydrous ammonia, increased by $688 per ton – $86,000 for a 1,000-acre farm – from the end of 2020 through the end of October 2021. “On our farm, we’re seeing prices three times higher than last year for our nitrogen fertilizer,” said Randy Poll, president of the Michigan Corn Growers Association. “In some instances, our suppliers are unable to guarantee that there will even be enough product available. These price increases are not sustainable for Michigan farmers.” The study has farmers raising concerns about a petition by CF Industries, one of the country’s major nitrogen producers, with U.S. International Trade Commission to impose tariffs on nitrogen fertilizers imported from Trinidad & Tobago and Russia. The U.S. Department of Commerce has since released a preliminary finding recommending tariffs, despite strong outcry from farm groups. “The proposed tariffs will create shortages and drive our costs up even higher,” Iowa farmer and National Corn Growers Association President Chris Edgington said. “They will add insult to injury and impose a financial hardship on family farms.” This academic study verifies that nitrogen prices erode profitability for family farms, Edgington said. “Our request is simple,” he said. “We’re just asking that these companies keep us out of their trade disputes, ...

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John LaRose Jr. John LaRose Jr.
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Topics: Economics, Pest Control, Insects, Research, Ag North America,
John LaRose Jr. John LaRose Jr.
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Topics: Agriculture US, Forestry, Economics, Research, Weather,
John LaRose Jr. John LaRose Jr.
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Topics: Dairy, Agriculture US, Agriculture Global, Economics, Sustainability, Fertilizer,
John LaRose Jr. John LaRose Jr.
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Topics: Commodities, Agriculture Global, Economics, Research, Trade (Commodities), Government / Policies, Coronavirus/COVID,
John LaRose Jr. John LaRose Jr.
shared this 2 article 3 years ago
Topics: Commodities, Crop Consultant, Economics, Sustainability, World Hunger, Ag Africa,
John LaRose Jr. John LaRose Jr.
shared this 2 article 3 years ago
Topics: Commodities, Agriculture US, Agriculture Global, Economics, Ag Australia/NZ,

‘Three key factors’: Agriculture businesses making bumper profits

National Farmers’ Federation’s Charles Thomas says the record result seen for this financial year for farmers comes down to three factors. It comes as agriculture businesses are making bumper profits and investors are paying top dollar for land and access to other opportunities. “It’s the same factors that decide our success almost every season; it’s the climate, so we’ve got a really favourable La Niña weather system playing on the east coast at the moment,” Mr Thomas told Sky News host Cory Bernardi. “Second is our commodity prices, so we’re seeing very favourable commodity prices. “The final thing is the currency...the Australian farm sector exports two-thirds of what we produce, so what the farmers get paid at the end of the day is really dictated in US dollar term.”

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Nancy Kavazanjian Nancy Kavazanjian
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Topics: Soil Health, Agriculture US, Conservation/Tillage, Water, Economics, Sustainability,

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