Prices for fertilizer across North America have soared to the highest in nearly a decade, as elevated commodity prices prompt some farmers to increase crop yields, leading to a sudden growth in demand for the nutrients essential for food production.
Bloomberg’s Green Markets North America Fertilizer Price Index has jumped to the highest since 2012, as elevated commodity prices due to adverse weather effects in other regions entice US farmers to increase crop yields. The boost in demand for food production nutrients, coupled with supply-side constraints such as higher logistics costs, higher energy costs, and new tariffs, have forced prices for common fertilizer such as phosphate, potash, and nitrogen to increase.
Although it remains unknown how long the elevated fertilizer prices will persist, the added increase in farming costs will translate to higher food costs for consumers— which likely will not be the ‘transitory’ kind.
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