FERTILIZER

The rise is due to several factors, including the price of certain components of fertilizer, high energy costs, supply issues and now the Russian invasion in Ukraine that is limiting the global supply, experts say. Russia is one of the leading global exporters.

“I think consumers are going to see higher prices across the board on farm and food products — and already are — but this is going to be true whether they’re buying from a local farmer, or whether they’re buying California-grown produce at the supermarket,” said Chris Laughton, an agricultural economist with Farm Credit East, a farmer-owned lender with about 1,000 customers in Connecticut. “So I think locally grown products will still be a good value, plus you’d be supporting local agriculture.”

Dustyn Nelson, president of the Connecticut Nursery and Landscape Association, also cautioned prices are up elsewhere due to fertilizer costs, or businesses might have to alter what’s offered.

“Fertilizer prices have affected the entire green industry,” Nelson said, which includes a number of other areas, such as greenhouses, turfgrass, floriculture and Christmas trees. “Costs are increased in all facets of the industry, especially energy and transportation, so this compounds, resulting in increased prices of products and services.”

Why it’s rising

The major nutrients found in fertilizer — nitrogen, phosphorous and potassium — are more expensive, which in turn makes the fertilizer more expensive, according to the American Farm Bureau Federation.

“Fertilizer prices are on the rise globally, some even as much as 300 percent, for a number of reasons,” Nelson said.

The input costs to mine and the raw materials themselves for fertilizer are on the rise, as are various aspects of the production, including fuel, labor and equipment. Pandemic and weather-related supply interruptions have also contributed to this increase in price, he said.

Nelson said China has suspended exports on fertilizers and current sanctions on Russian fertilizers are impacting the markets. Black Sea trading routes are also currently unstable. And while the supply has been limited, there has also been increased demand for fertilizers in both residential and commercial applications.

“In much the same way as we’ve seen gasoline prices rise, this is really a result of global supply and demand dynamics affecting us locally,” Laughton said. “A lot of the fertilizer we use is imported, and some of it comes from Russia or other locations where trade has been disrupted.”

Farmers

Like other farmers, Maynard has taken to supplementing some of the fertilizer with her compost and animal manure already on the farm.

“We’re in a fortunate position that we have that, not all farms do,” she said, adding the soil in New England generally lacks the main nutrients found in fertilizer, which is why it’s added to help the crops grow.

She said they also had to decide if they would continue to grow their own feed for their livestock or buy it. She said either way, there’s an added cost. If not the fertilizer and seeds to grow the feed, then the feed itself.

Maynard said the farm also relies on equipment powered by diesel, so they can’t switch to an alternative fuel source.

“Farming overall is not built that way,” she said.

Al Popp, owner of Popps Farm in Easton, said all of his expenses have doubled — fuel, labor, and fertilizer are just a portion of that.

“It all adds up to the same realm of being a farmer,” he said.

He also helped offset the fertilizer issue by adding more compost to his soil.

“We add it every year, this year we just added a little more,” Popp said.

So far, neither has reported issues with their harvests, but Maynard said she won’t know until late September or early October if the investment up front paid off. She said a hurricane could come and destroy the crop.

“We just keep our fingers crossed and stay optimistic that our upfront will be mitigated by the end result,” she said.

Laughton said Connecticut agriculture differs from what might be seen in the Midwest where fertilizer is much more of a factor based on the type of farming.

“In places like Iowa, corn and soybeans are the major crops, and fertilizer is one of their highest input costs, so fertilizer prices are going to affect them a lot,” he said. “In Connecticut, we’re more concentrated in things like dairy, fruits and vegetables, nursery and greenhouse crops. For this type of agriculture, fertilizer is comparatively a smaller part of their input costs. So it still matters, but not as much.”

Connecticut Department of Agriculture Commissioner Bryan P. Hurlburt said the state’s agriculture producers have seen significant supply chain disruptions over the past two years due to the pandemic

“More recently the conflict in Ukraine, a major exporter of agricultural inputs used in fertilizer and animal feed, is driving prices upwards for farmers,” said Hurlburt. “These increases combined with inflated labor, fuel, and electricity costs are challenging in an industry that already has historically slim profit margins.”

He urged people to buy local wherever possible to help those farmers, including farmers’ markets, farm stands or getting CT Grown items at stores.

“For every dollar spent on a local food product, 75 percent stays in the community,” he said.

Home garderners will also see higher fertilizer and other lawn or garden products but it will only be a relatively small cost for them, compared to the larger amounts farmers use and pay for, Nelson said.

Parks and rec

Municipalities also use large amounts of fertilizers given the number of athletic fields they oversee.

Anthony Calabrese, Fairfield’s parks and recreation director, said the town has been affected by the fertilizer supply, just not in their budgets.

“We are currently under contract for our fertilizer so we have a bid that guarantees our rates so we are not feeling the impact of inflation,” he said. “However, we are seeing massive delays in receiving items across the board. When our contract is up we will likely see the effects of the increased prices in our next bid process.”

Westport meanwhile has had to adjust how it fertilizes its fields.

“The increase to fertilizer cost has had a significant impact on our operations, and has been creeping up over the last year and a half,” said Parks and Recreation Director Jennifer Fava. “We simply cannot afford to purchase what we would have been able to purchase in the past. We have had to prioritize our resources which means some properties are not receiving full agronomic programs as they should.”

She said this will likely continue for some time since the new fiscal year is just about to start.

“If costs do not come down, or continue to increase, in order to appropriately fund our agronomic plans in the future, we will need to request increases in our budget to address these rising costs in the future,” Fava said.

Nurseries and landscaping

Nelson said the consumer might see higher prices for plants, products and services due to the rising costs.

“These increases in prices are simply to cover their costs, ensure they can remain in business, and allow their employees to provide for their families,” he said. “Some companies may choose to cut back on production of plants to help mitigate costs, so certain crops may be in short supply or unavailable. Alternative plants may need to be substituted.”

He said the green industry has a number of methods already out there to help with fertilizer usage.

One method is soil tests, like those offered through the University of Connecticut and the Connecticut Agricultural Experiment Station. This identifies what nutrients are needed and how much fertilizer to apply.

“The green industry will innovate and adapt to help maintain costs and produce quality plants,” Nelson said.

There are also a variety of ways to ensure the fertilizer stays in place, like applying mulch over it, mixing it into the soil, using devices to keep plants upright, and using fertilizers coated in tacky material so it still stays in place if the plant does tip. Slow-release fertilizers also help reduce leaching and reduce labor costs from repeated applications, he said.

End in sight?

Many say it’s unclear when the prices might come down.

“I think, or I hope at least, that the record high prices we’re seeing now are as high as they are going to go, but it’s really anyone’s guess what will happen,” Laughton said. “Some of it will depend on what happens with the war in Ukraine and related sanctions and trade disruptions, and another major factor is energy prices. Fertilizer uses energy in its manufacture, so if for example, natural gas prices go up a lot, fertilizer will as well.”

He said so much of it is driven by global events so people will have to ride out the current costs.

Nelson agreed.

“Prices will remain elevated as energy prices remain high, the supply chain struggles, and global conflict continues,” he said.

Popp said he hasn’t heard of a break in the prices coming any time soon from his suppliers. In fact, his supplier is already encouraging him to think about next season’s fertilizer order.

“Now they’re quoting every day,” he said. “That’s how fast it’s changing.”

Maynard is optimistic though, saying something has to happen soon that will bring the prices down and offer some relief. That could be something happening globally to increase supply or the U.S. becoming more self sufficient.

“One of those two things will happen,” she said.