Fertilizer Prices to Remain High Through 2028 Amid Global Tensions

Fertilizer prices are expected to remain high through 2028 due to geopolitical tensions and supply constraints, according to a new report from CoBank's Knowledge Exchange.

The Middle East plays a significant role in the global fertilizer supply chain, producing more than 60 million tons of fertilizer and raw materials annually. Much of that supply moves through the Strait of Hormuz, making it vulnerable to disruptions caused by regional instability.

Farmers are looking for ways to make each application more efficient, with some reducing phosphate and potassium applications by 10% to 15% while maintaining nitrogen rates. However, CoBank economist Jacqui Fatka cautioned that continued reductions could eventually affect soil productivity and crop yields.