Rising gas prices have rippled across the economy, plowing
through local farmers’ profits and raising prices at the
supermarket, but fertilizer prices have been adding to the problem
for years.
Rising gas prices have rippled across the economy, plowing through local farmers’ profits and raising prices at the supermarket, but fertilizer prices have been adding to the problem for years.
Local cherry-farmer Ralph Santos said he has seen fertilizer prices double in the last two the three years, and the reason’s simple.
“It’s the fuel,” said Santos, adding that there’s no remedy because the production of nitrogen fertilizers require fossil fuels such as natural gas. Using renewable energy sources to produce fertilizers remains costly compared to traditional production methods.
Some fertilizers’ prices have jumped by 60 percent in the last year, according to Mark Wright, general manager at Filice Farms in San Benito County. Wright noted in particular that nitrogen fertilizer’s demand has gone up globally and that the vast majority of producers use natural gas to manufacture it.
Filice Farms in Hollister uses 10 fertilizers – all nitrogen based – on its property that grows products for 11 different companies.
Figuring out final costs for some of those businesses probably will have to wait until the end of the year because those numbers can’t be set without knowing expenses for such relatively expensive necessities as fertilizers. As the gas prices go, though, so do the costs of fertilizer, Wright pointed out.
San Benito County Agriculture Commissioner Paul Matulich also attributed the fertilizer spike to rising transportation costs due to gas prices. He noted that it costs truckers about $1,000 just to fill up their tankers.
“(The) market is paying for higher (prices) of fertilizer,” Matulich said.
With so much produce in California and many of the fruits and vegetables grown here sold at market rate – as opposed to most dairy products – it means consumers will eventually pay extra when those costs are added to the prices of such food. Some farmers also historically grow fewer crops when fertilizer prices increase, which also could affect demand.
“(It) takes energy to produce fertilizer,” said local vegetable grower Richard Bianchi.
While fertilizer prices have soared, urea – an organic compound fertilizer extremely high in nitrogen – fetches nearly $550 a ton, according to the Delta Farm Press Web site. The price was $400 a year ago.
Beyond this, there isn’t much nitrogen produced in the United States, and none is produced in California, Bianchi said, while most of the fertilizer comes from China.
“(Prices are) going to continue to go up,” he said.
It’s difficult, however, to find one set price for fertilizer because there are more than 100 types, and each varies based on its use and what type of crop is being grown, Bianchi said. In the past 10 to 12 months, the price has jumped by about 30 percent, and in the last 18 months, it has increased by 70 percent, Bianchi said.
And he said consumers will end up paying the price.
By the numbers
60 percent increase in price of some fertilizers
100 types of fertilizer available
550 dollars for one ton of organic compound
fertilizer
