
Nitrogen
Fertilizer

High N Prices Hit
Again
The cost of nitrogen (N) fertilizer,
an essential input in our crop production system, has increased
to levels we have not seen since 2001 (Table 1). Similar to 2001,
the primary driver for this price increase was high natural gas
prices and increased demand for natural gas throughout the winter.
All synthetic nitrogen fertilizer products begin as ammonia. Ammonia
is the product of nitrogen gas (N2)
from the atmosphere and hydrogen (H2)
from either fossil fuels or water (3H2
+ N2
2 NH3).
Natural gas is the primary source of hydrogen in this process
and therefore N prices are sensitive to natural gas supplies.
The natural gas price this winter (Figure 1) was not quite as
high as it was in 2001, but changes in the fertilizer industry
and increased demand from household and electric utility providers
for this clean burning fuel have bumped N prices to similar levels.
Furthermore, a colder than average winter and limited alternative
energy supplies have added to the pressure on natural gas. After
the N fertilizer price spike in 2001, N prices declined during
the 2002 and 2003 growing seasons, although not to the low price
levels producers enjoyed prior to 2001. This year’s prices
may not be as much “sticker shock” as in 2001, but
they still hit growers during a time of economic stress with additional
drought pressure and relatively flat commodity prices. What
can growers do to deal with a large increase in an input so essential
to crop productivity? There are several interrelated practices
that growers should consider in order to more efficiently manage
N to achieve the best return for their fertilizer dollar. In this
issue we review many of these practices and provide information
on new N management strategies. Besides prices, growers using
N fertilizer also need to be aware of several issues regarding
the security and stewardship of their N fertilizer during transportation
and storage. Three articles in this newsletter offer suggestions
for keeping your N fertilizer supply from being stolen or lost
to undesirable locations in our environment. Nitrogen fertilizer
is more valuable than ever. The following articles discuss strategies
on how to best utilize N purchased at a premium.
Table 1. Nitrogen fertilizer,
fertilizer grade, and price (US$) in 2004 |
|
|
Grade
|
Price/ton
|
Average
|
Price/pound
|
Average
|
|
|
---%---
|
----------$/ton----------
|
---------$/pound
N ---------
|
Anhydrous ammonia |
82-0-0
|
350-470
|
397
|
0.21-0.29
|
0.24
|
Urea Ammonium Nitrate |
32-0-0
|
180-280
|
208
|
0.28-0.44
|
0.33
|
Ammonium nitrate |
34-0-0
|
300-440
|
370
|
0.44-0.65
|
0.54
|
Urea |
46-0-0
|
260-400
|
302
|
0.28-0.43
|
0.33
|
|
|
|
FROM THE GROUND
UP agronomy news is a monthly publication of Cooperative Extension,
Department of Soil & Crop Sciences, Colorado State University,
Fort Collins, Colorado.
The information in this newsletter is not copyrighted and may be
distributed freely. Please give the original author the appropriate
credit for their work.
|
|
Troy Bauder, Raj Khosla, and Reagan Waskom
Technical Editors
Direct questions and comments to:
Deborah Fields
Phone: 970- 491-6201
Fax: 970-491-2758
e-mail: dfields@lamar.colostate.edu
| Extension
staff members are:
|
Troy Bauder, Water Quality
Mark Brick, Bean Production
Joe Brummer, Forages
Betsy Buffington,
Pesticide
Pat Byrne, Biotechnology
Jessica Davis, Soils
|
Jerry Johnson,
Variety Testing
Raj Khosla, Precision
Farming
Sandra McDonald,
Pesticide
Calvin Pearson,
New Crops
James Self, Soil,
Water & Plant Testing
Reagan Waskom,
Water Resources
|
|
| Colorado
State University, U.S. Department of Agriculture, and Colorado counties
cooperating. Cooperative Extension programs are available to all without
discrimination. The information given herein is supplied with the
understanding that no discrimination is intended and no endorsement
by Colorado State University Cooperative Extension is implied.
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