A new study by Texas A&M university has raised more red flags for farmers concerning tariffs on nitrogen fertilizer.
Lead researcher Joe Outlaw says while many are blaming the increase in natural gas prices for increased fertilizer costs, their historical analysis shows the correlation between fertilizer costs and natural gas prices decoupled around 2010.
“We can put to bed the connection between natural gas and ammonia at this point.”
The study notes anhydrous ammonia increased by $688 per ton from the end of 2020 through October 2021.