AUDIO: Veronica Nigh – The Fertilizer Institute
The chief economist with The Fertilizer Institute says the ongoing conflict in the Middle East is raising concerns about U.S. fertilizer supplies.
“We think we’re about 2 million tons short on nitrogen for the spring market.”
Veronica Nigh says around 50% of global exports of urea moves through the now-closed Strait of Hormuz, which doesn’t bode well for spring applications.
“It takes about a month to get product from the Strait of Hormuz to the Port of New Orleans.” She says, “And then it takes it three to four weeks to barge it to different portions of the Corn Belt.”
Illinois farmer Brad Zimmerman tells Brownfield that fertilizer is a hot topic in conversations with other farmers.
“There’s uncertainty there.” He says, “What’s going to happen with nitrogen prices? Are we even going to be able to get nitrogen that we need this summer?”
Nigh says the lack of alternative urea suppliers means prices are likely to continue higher.
“We’re looking at over a 30% jump on urea prices at New Orleans.” She says, “Quite honestly, we’re a little concerned.”
Nigh says the longer the Strait remains closed, uncertainty around fertilizer supplies will remain.
