According to CoBank Lead Economist for Farm Supply and Biofuels, Jacqui Fatka, the impact on the fertilizer market from the Iranian war depends on the timing and duration of this conflict. “This isn’t just a re-shifting of supplies in the fertilizer market as we saw in 2022. This is now closed down facilities or capacity, so the longer this goes, the longer that tail is on impacting not just this planting season but also decisions that are going to be made for 202.” The U.S. may have less exposure for some fertilizer categories, like ammonia and potash, but the Persian Gulf is an important source of urea, DAP, and MAP. An estimated 20-to-25 percent of the fertilizer still needs to be secured for this spring season. For the product that is booked, Fatka said most ag retailers have those supplies on hand. In this economic environment, Fatka says farmers need to know their cost of production and be able to execute their marketing plan when opportunities are available. Listen to the full interview.
