DTN Retail Fertilizer Trends

LINCOLN, Neb. (DTN) -- Most retail fertilizer prices tracked by DTN continued to rise during the fourth week of January, while several of them continued to hit all-time highs.

Seven of the eight major fertilizers were slightly higher, although none of them saw significant increases as determined by DTN to be 5% or more.

Anhydrous led all fertilizers with a 4% spike, reaching at an all-time high $1,492 per ton, a jump from $1,433 the prior week. UAN28 saw a 3% jump to an all-time-high price of $601/ton, shattering the previous high of $585/ton. UAN32 continued its record pace this week, coming in at $699/ton, an increase of about 2% and also an all-time high.

After hitting the $800/ton level for the first since March 2012 last week, 10-34-0 increased by about 2% to $817/ton.

DAP had an average price of $877 per ton, MAP $936/ton and potash increased slightly to $814/ton.

Urea was the only fertilizer price to fall, by about 1% to $910/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.99/lb.N, anhydrous $0.91/lb.N, UAN28 $1.07/lb.N and UAN32 $1.09/lb.N.

Last week, the Iowa Department of Agriculture and Land Stewardship announced a cooperative agreement with Polk County, the city of Des Moines and Des Moines Water Works to help expand the amount of cover crops planted in the Des Moines and Raccoon River watersheds, as part of the state's ongoing voluntary efforts to reduce nutrients runoff from farm fields.

"Our public and private partners are critical to the success of every conservation project underway in Iowa," Iowa Secretary of Agriculture Mike Naig said in a news release.

"We're pleased to continue working alongside our current partners and welcome new ones to help implement more soil health and water quality practices in priority watersheds around the state."

As part of the project, Polk County, the city of Des Moines and Des Moines Water Works, announced they will purchase equipment needed to plant cover crops.

The state is expected to use funding from a water quality initiative to reimburse Polk County up to $350,000, based on the number of cover crop acres planted with the equipment. Ag retailer Heartland Co-op expects to use the seeder to apply cover crop seed for farmers and landowners in central Iowa.

"Improving surface water quality and protecting our natural resources is critical to our mission of providing safe, affordable drinking water to 600,000 customers in urban, suburban, and rural areas of central Iowa," said Ted Corrigan, Des Moines Water Works CEO. "We are happy to support this innovative project and work with these valued partners toward a shared goal."

The project goal is to seed up to 40,000 acres of cover crops over the next four years in the Des Moines and Raccoon River watersheds. Iowa farmers and landowners have planted more than 2 million acres of cover crops in recent years, according to the news release.

Retail fertilizer prices compared to a year ago show all fertilizers have increased significantly, with several fertilizers having well-over 100% price increases.

MAP is now 61% more expensive, 10-34-0 is 67% higher, DAP is 76% more expensive, potash is 115% higher, urea is 125% more expensive, UAN32 is 171% higher, UAN28 173% is more expensive and anhydrous is 205% higher compared to last year.

DTN surveys more than 300 retailers, gathering roughly 1,700 fertilizer price bids, to compile the DTN Fertilizer Index each week. In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….

Todd Neeley can be reached at [email protected]

Follow him on Twitter @DTNeeley

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