What is NPK farming? These three numbers form what is called the fertilizer’s N-P-K ratio — the proportion of three plant nutrients in order: nitrogen (N), phosphorus (P) and potassium (K). The product’s N-P-K numbers reflect each nutrient’s percentage by weight. … Lush grasses flourish with high-nitrogen fertilizers.
This year, Farmers are going to be paying more for herbicides and pesticides as they grapple with higher costs for fertilizer, seeds and fuel.
Farm inputs are up 2x-3x Year Over Year (YOY). There’s also some availability issues for certain agriculture inputs, most especially crop protection and specialty fertilizers. While there will likely be some localized shortages, there’s enough NPKs in the US to meet almost all needs.
Prices are the big issue for farmers.
Many farmers are likely to cutback on fertilizer apps. I’ve seen estimates this could cause yields for crops like corn to be down 1-2% an acre. On the good side, commodity prices are strong and will likely stay strong.
The US is not facing a looming food crisis. The worst case scenario is logistical problems mean that there won’t be the same product selection at the grocery store. Rising food costs is where we will feel the paing the most. We’ve seen about 10% food price inflation the past 12 months, and this is only factoring in price hikes from Q1 of 2021. It takes about 6-9 months for price hikes to work their way through the agri-food supply chain.
Most of the price increases we’ve seen for NPKs was in Q4 2021. Those impacts won’t be felt until around this summer. What happens when food prices go up another 10-15%?
1) Food price inflation is a tax on Americans.
2) Every dollar spent on food means a dollar less spent on other consumer goods. The economy takes a hit.
Food security is national security.