Cooperative Extension Colorado State University APRIL 2004 VOLUME 24 ISSUE 1
INSIDE THIS ISSUE
High N Prices Hit Again Soil Testing and Fertilizer Recommendations for Nitrogen Use It Pays to Manage Nitrogen Using Precision Agriculture Techniques Nitrogen Credits Reduce Fertilizer N Need When Fertilizer is Expensive, Think Manure! In-Season Tools Manage N Closer To Margin Nitrogen Application Managing Irrigation Water Considerations for On-Farm Fertilizer and Pesticide Storage Security Requirements Affect Fertilizer Transport Tips on Preventing Anhydrous Ammonia Theft

Nitrogen Fertilizer

High N Prices Hit Again

The cost of nitrogen (N) fertilizer, an essential input in our crop production system, has increased to levels we have not seen since 2001 (Table 1). Similar to 2001, the primary driver for this price increase was high natural gas prices and increased demand for natural gas throughout the winter. All synthetic nitrogen fertilizer products begin as ammonia. Ammonia is the product of nitrogen gas (N2) from the atmosphere and hydrogen (H2) from either fossil fuels or water (3H2 + N2 2 NH3). Natural gas is the primary source of hydrogen in this process and therefore N prices are sensitive to natural gas supplies. The natural gas price this winter (Figure 1) was not quite as high as it was in 2001, but changes in the fertilizer industry and increased demand from household and electric utility providers for this clean burning fuel have bumped N prices to similar levels. Furthermore, a colder than average winter and limited alternative energy supplies have added to the pressure on natural gas.

After the N fertilizer price spike in 2001, N prices declined during the 2002 and 2003 growing seasons, although not to the low price levels producers enjoyed prior to 2001. This year’s prices may not be as much “sticker shock” as in 2001, but they still hit growers during a time of economic stress with additional drought pressure and relatively flat commodity prices.

What can growers do to deal with a large increase in an input so essential to crop productivity? There are several interrelated practices that growers should consider in order to more efficiently manage N to achieve the best return for their fertilizer dollar. In this issue we review many of these practices and provide information on new N management strategies. Besides prices, growers using N fertilizer also need to be aware of several issues regarding the security and stewardship of their N fertilizer during transportation and storage. Three articles in this newsletter offer suggestions for keeping your N fertilizer supply from being stolen or lost to undesirable locations in our environment. Nitrogen fertilizer is more valuable than ever. The following articles discuss strategies on how to best utilize N purchased at a premium.

Figure 1. Average price (winter commercial) for natural gas. Source: U.S. Department of Energy at: http://www.eia.doe.gov/oil_gas/natural_gas/info_glance/natural_gas.html