Commodity Price Update

Commodity prices are going up, which means fertilizer prices will be increasing. Last fall, fertilizer was a very good value and with a very good application season most fertilizer products were sold out or nearly sold out. Our prepay season has been also very good, so maybe the best way to off set some of the increase in pricing this season would be to prepay earlier instead of waiting until in season. At this point most of the fertilizer cost has gone up $40-$90 a ton. If crop prices are going to stay high expect an even bigger price increase, again prepaying is the best way to off set this. Our storage shed doesn’t hold all the product that is needed for the season so we are always having to buy at a new price and we will increase price as needed. At this time, we can not price nitrogen for sidedress as producers are not caught up enough to give out sidedress prices yet.
 
Don Lewis
Agronomy Manager