Fertiliser Price Surge Leaves Farmers Facing Uncertain Futures
A turbulent year for fertiliser prices has left farmers facing another difficult decision. The US-Israeli conflict with Iran, which began on February 28th, disrupted energy shipments through the Strait of Hormuz, a crucial route for oil and gas exports.
This led to a surge in natural gas prices, followed by an increase in fertiliser prices of €80-€100 per tonne. Prices remained high throughout the first half of the season but eased back slightly during the summer months.
The current price of gas is around €82/MWh, and next year's fertiliser is being manufactured with this higher price. This suggests that fertiliser prices will continue to rise in 2027.
Farmers are left wondering whether they should buy next year's fertiliser now or wait until the spring. However, many lack the cash flow to do so, and other bills such as feed, machinery, fuel, and electricity must be paid between now and spring.