(OTTUMWA, Iowa) - With planting season just a few weeks away, Heartland farmers are facing tough decisions in light of high fertilizer prices.
According to ISU Extension Field Specialist Bob Wells, the price of fertilizer has many producers still undecided whether to plant corn or beans.
Corn requires more high-priced fertilizer, but a rush to plant beans to avoid high costs could depress the price of that crop. A bad decision can ruin a farmer's year.
The conundrum is a result of high oil prices late last summer. Most fertilizers are made from petroleum.
Wells told KTVO that as the price of oil sky-rocketed last year, dealers locked in prices out of fear they would keep going up.
Now both dealers and customers have to live with those high-priced contracts.
In fact, the problem is so thorny that it has helped inspire one Heartland dairy farmer to consider running for Iowa's top agriculture job.
Fairfield farmer Francis Thicke gave high fertilizer prices as one reason he is considering a run for Iowa Secretary of Agriculture.
“Last time it was a tremendous shock to agriculture. We still have very high fertilizer prices as a result of those spikes. We saw earlier its putting farmers into this boom and bust situation and they can get caught in between prices going down and fertilizer prices going up,” Thicke said.
So will high fertilizer prices result in high prices for consumers at the grocery store?
Bob Wells says a return to high fuel prices will affect grocery prices, but it won't be as a result of fertilizer costs.
For example, farmer are responsible for less than 10 cents of the price of a loaf of bread. Wells says high diesel fuel prices have a far greater impact on grocery prices than do fertilizer costs.