WASHINTON D.C. (Dakota News Now) – For many farmers, fertilizer can be one of the most expensive inputs for crop production, and as those costs continue to rise, some producers say it\u2019s getting harder to protect their profit margins and plan for the future.<\/p>\n
Senator John Thune used Tuesday\u2019s Senate Agriculture Committee Hearing to discuss some of the issues facing agriculture, including high input costs and limited competition in the fertilizer industry. <\/p>\n
\u201cIt\u2019s important that Congress continue its work toward long-term solutions that support the entire ag industry,\u201d said Thune. \u201cI am very proud of what we did last summer, the working families tax cuts to increase reference prices for ARC and PLC, improve crop insurance protection, and update disaster programs. But I will say there remains more to be done.\u201d<\/p>\n
He also introduced South Dakota Corn Growers Association president and local farmer Trent Kubik, who testified before the committee, sharing how those challenges are affecting operations at home.<\/p>\n
\u201cWe\u2019re starting to get concerned about what do we do in crop as our crop is growing and needs more fertilizer, and then as we look towards 2027, it\u2019s a real concern,\u201d said Kubik. <\/p>\n
While the cost of fertilizer is partly due to the Iran war, the increase has been an issue for much longer than that.<\/p>\n
\u201cIn 2020, my farm paid $355 for a ton of urea,\u201d said Kubik. \u201cBy the time 2022 hit, that price jumped to $830. A little bit of retract in 2023 and 2024 to $400 and $500, $600 range, which at the time doesn\u2019t take a sharp pencil to figure out that it\u2019s not sustainable and we can\u2019t be profitable at those levels.\u201d<\/p>\n
Kubik said South Dakota has not experienced a nitrogen shortage yet, but phosphate remains high, and his family took the risk of not applying any on their farm this year.<\/p>\n
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