NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665


March 23, 2000

News Is Good for Nitrogen Prices, Nitrate Conversion; Options Similar to Last Year

Nitrogen (N) fertilizers remain relatively low in price despite recent increases in gasoline and diesel fuel prices. One reason for the current price scenario is oversupply, says a soil scientist at North Dakota State University. Until the supply situation reverses, buyers--namely farmers--can expect bargains.

"Transportation costs for moving N fertilizers will probably have some impact on the retail price of fertilizers, but the cost of the fertilizers themselves will be stable through spring," says Dave Franzen, extension soil science specialist at NDSU. "The industry people I have talked to see no change in the supply condition until crop prices improve and farmers become more aggressive in their purchases."

But will farmers necessarily purchase more fertilizer then? Franzen says the relationship between crops prices and N fertilizer sales seems to create a paradox: Farmers tend to use N fertilizers more efficiently when crop prices fall, so even when crop prices rebound, there is less demand due to the efficiencies producers have achieved.



More Good News

"Between the fall of 1999 and mid-March 2000, there has been lower-than-normal snowfall and rain in the state," Franzen says. "This is good, because the warmer weather has most likely contributed to higher nitrate conversion on those acres where N fertilizer was applied. If precipitation this spring is normal, or below normal, crops should be able to make full use of fall-applied N."

Franzen says N fertilizer options for 2000 are similar to last year, and in many locations, producers have better options due to the drier seedbed conditions. The following application guidelines are based on reports and observations of soil conditions around the state:

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Source: Dave Franzen (701) 231-8884
Editor: Dean Hulse (701) 231-6136