Nitrogen Demand Expected to Increase in 2022, Along with Already-Record High Prices

The cost of fertilizer is expected to increase in 2022 despite record-high costs plaguing growers all of 2021, according to a recent report from the International Fertilizer Association (IFA). Nitrogen supplies continue to be tight as supply chain struggles persist, but analysts say costs could fall in the latter half of the new year if supply issues straighten out. Additionally, global nitrogen demand is expected to increase. The Public Summary Medium-Term Fertilizer Outlook 2021-2025 estimates a 5.2% increase in nitrogen use, the largest increase since 2011. High natural gas prices continue to climb, also impacting the nitrogen price hikes. As corn acres are expected to increase this next growing season, its reasonable to believe nitrogen supply issues will continue.

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