Fertilizer Costs High in the Currency of Corn

More Corn Bushels to Purchase the Same Fertilizer

Rising fertilizer costs are a concern for corn growers, both in absolute prices and relative to the price they receive for their crop. Farmers buy their fertilizer with dollars, but earn their dollars in bushels. Calculating fertilizer price in corn bushels reveals the cost of the trade-off for added fertility. Retail prices as well as the number of bushels of corn it takes to buy a ton of fertilizer have notably risen across all fertilizers since the first of the year. Farmers are in a tough situation with low corn prices and high fertilizer costs. The concern is elevated as corn growers look ahead to the fall and plan for the upcoming 2026 crop.

Fertilizer Price Rise in 2025

Farmers have several fertilizer options to supply the nutrients needed to grow corn. Based on the DTN Retail Fertilizer Index that tracks retail fertilizer prices collected weekly from agricultural retailers across the United States, prices of seven primary fertilizers are at their highest point in over a decade, aside from the war-driven spike in 2022 when Russia invaded Ukraine.

Since the first of the year, potash has risen 8.3% in price and phosphate fertilizers MAP and DAP have risen 4.7% and 9.6%, respectively. Anhydrous ammonia has increased 4.9%, but the prices of three other nitrogen fertilizers have escalated 29.0% to 37.6%. Price increases at that level are highly concerning, but even the smaller increases can make a difference in a farm budget given fertilizer captures about one-third of the operating cost in growing corn.

Fertilizer Price in Corn Bushels

The nearby futures price of corn is currently around $4.20, down 10% from $4.60 at the first of the year, but even lower relative to prices in the $4.80s and $4.90s throughout most of February. The rising price of fertilizer is even more costly if the currency of corn bushels is used.

Based on the average retail fertilizer prices and nearby corn contract price as of late June, it takes 157 bushels of corn to buy a ton of Urea and 120 bushels to buy a ton of UAN 32%, over 44% more bushels compared to the ten-year average of 109 and 83, respectively. Similarly, DAP, MAP, and UAN 28% all cost around 40% more bushels than the ten-year average. Anhydrous ammonia costs 20% more bushels and potash 11% more bushels.

These metrics give a point in time view at the farm level - the farm cost of a fertilizer purchase from a local retailer and the farm prices for a same day sale, not accounting for basis adjustment. While all are at relatively high points, none are at record levels.

Heightened Concern for Fertilizer Costs and Corn Prices for the 2026 Crop

Using different metrics for current fertilizer and corn prices, it costs a record number of bushels to buy fertilizer. For example, StoneX Financial Inc. calculations using New Orleans wholesale fertilizer prices and the new crop corn contract show the fertilizer and corn price ratio is the worst in history for phosphate, second worst in history for UAN, and third worst in history for Urea. These metrics provide a look ahead at the fertilizer that retailers will be selling and the expected prices for later delivery of the current corn crop, indicating the situation isn't likely to improve soon. This heightens concern as corn growers look ahead to fall and plan for the upcoming 2026 crop.