Spring Planting Costs Hit Farmers Hard

By Scout Nelson

The North Dakota Farm Bureau, North Dakota Farmers Union, and farm leaders report that North Dakota farmers are dealing with sharp increases in fuel and fertilizer costs as spring planting season begins. These rising expenses are creating difficult choices for producers who already face tight budgets and uncertain markets. Higher farm costs may also affect rural communities where agriculture supports many local jobs and businesses.

Farm leaders say uncertainty continues to grow as planting time gets closer. Many producers bought some fuel and fertilizer last fall, but not enough for the full season because they hoped prices would fall. Instead, costs moved even higher.

“Most of the people I’ve talked to didn’t contract everything they thought they’d need, because they were hoping that with some of the things that were going on and some of the promises that were being made, that maybe prices would actually come down,” Wagner said.

Diesel prices are nearing $5 per gallon in North Dakota and are much higher than last year. Farmers depend on fuel for tractors, trucks, and other daily operations.

“That impacts absolutely everything,” said Evan Montgomery, ND Soybean Council Vice Chairman and a third-generation grain farmer from Grand Forks. “Every day we get out of bed we have to pay a fuel bill.”

Fertilizer prices are also a major concern. Urea prices have risen sharply, while nitrogen fertilizer costs are also much higher. These increases can add large costs per acre to crop budgets.

“Just with fertilizer prices, you’re looking at $60, $80, $100 difference (per acre) in your crop budget for the year,” Montgomery said. “With a lot of this stuff, we’re working on thin or even negative margins, so this is a double-whammy if there ever was one.”

Farm groups say some farmers may not be able to buy all the fertilizer they need. Others who pre-booked supplies still worry about delivery delays and shortages.

“It’s a major challenge for producers in terms of what it means right now going into this growing season,” Perdue said.

Some growers may shift acres to soybeans, peas, lentils, or other crops that need less fertilizer. If shortages continue, farmers may need to make late planting decisions based on available supplies and current costs.

Photo Credit: istock-chas