Fertiliser Price Tracker

7610 super q

Never Forgotten
Honorary Member
A surprising number of folks ( even on here ) seem to think grain and straw is produced in a factory just outside Milton Keynes. Nearly didn't get a crop at all after the spring/ early summer drought in 2020. I wouldn't risk forward selling of crops till they're safely in the shed.
 
I just signed up for two years again starting next March. I am a very low user, got 33p day and 25p night rate, 36p a day standing charge. The government are saying to expect prices to rise and stay high for the next 3 years so I figured the longer I delay the higher the quote will get. Moved from EDF to British Gas, £50/month cheaper on my consumption for the period
If rather pay 50/ month then deal with British gas
 

Planet Bee

Member
Trade
Back of an envelope.
Present day prices
Combined N and Base fertiliser cost £250 per acre.
Chemicals £100 per acre,
Stubble to stubble operations costs £150 per acre.
Seed, and considerable overheads associated with continuing arable farming £100 per acre.
So £600 per acre costs growing 3t per acre wheat. Wheat needs to be £200 per ton for me to break even. Considerably more for it to be “worth the risk”. A drought or quality issues could push me into a loss very easily.
er...


she'll be right at £300/mt for wheat then...
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
er...


she'll be right at £300/mt for wheat then...
Yes if it’s that price at harvest 2023.
All depends how quickly the war is over and many other factors beyond my control.
It’s very high stakes game now.
If it’s £150 per ton at harvest 2023 then I’m probably putting up the for sale sign if I’ve spent big on fert.
 

Renaultman

Member
Arable Farmer
Location
Darlington
Everybody cracks on about forward grain sales to lock in (slim) margins but I remember 2012 when I struggled to meet my forward sales obligations and was faced with buying in more expensive grain to meet forward contracts at a lower price. Forward sales are a very double edged sword and can magnify the downside of a supply shortfall due to weather / quality issues very significantly. Options might be better but come at a cost.
The way it looks at the moment is either lock in slim margins for a considerable risk or wait and see. Neither route looks very attractive but presently I intend to drill in the autumn and wait and see if fertiliser gets reasonable enough to buy. If it’s still too dear by next spring those crops will have nothing applied to them. I’ll harvest maybe a ton per acre and majexsane tiny margin as taking a huge risk with lots of expensive inputs.
I’m out for now.
Locking in is very contentious but if I can't lock in enough to pay your fertiliser bill before I drill without being confident of growing that much very comfortably I would be very scared.
Even at £1000.00/t assuming you use 600kg/ha it would cost £600/ha or £240/acre forward wheat prices are currently above that.
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
You can see why U.K. Ag is stuffed really. Farmers come on here grateful they can maybe, with a fair wind and lots of luck make £5 an acre after betting the farm on mega high input prices.
Like the NFU with RT it seems like some kind of badge of honour to many farmers to be able to close the tiny gap between supply industry greed and our customers determination to take as much of the cake as they possibly can.
Well I’ve more pride, more self worth than that. If margins are going to be wafer thin and the risk sky high then I’d rather mothball production and drive a bus for a year.
That’s how you negotiate. You don’t just buy at any price. We are not charities who have to produce food regardless.
 

Fubar

Member
Everybody cracks on about forward grain sales to lock in (slim) margins but I remember 2012 when I struggled to meet my forward sales obligations and was faced with buying in more expensive grain to meet forward contracts at a lower price. Forward sales are a very double edged sword and can magnify the downside of a supply shortfall due to weather / quality issues very significantly. Options might be better but come at a cost.
The way it looks at the moment is either lock in slim margins for a considerable risk or wait and see. Neither route looks very attractive but presently I intend to drill in the autumn and wait and see if fertiliser gets reasonable enough to buy. If it’s still too dear by next spring those crops will have nothing applied to them. I’ll harvest maybe a ton per acre and majexsane tiny margin as taking a huge risk with lots of expensive inputs.
I’m out for now.
This is the problem. If we knew exactly how much we were going to harvest then we would know our margins and lock in a forward sale price on everything to cover the inputs. I've always said we are not like a factory knocking out nuts and bolts that will more or less know their projected output down to the last thread. There are too many weather variables that can throw a spanner in the works. Take a ten year average sure. But in the last ten years I can guarantee there have been some record breaking high yields and also record breaking lows. Which one will this year be?And in a month or so time we will be expected to commit to expensive fertiliser for a crop that won't even be drilled until the Autumn,weather permitting (Remember Autumn 19 anyone?)
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
This time last year I bought my last load of nitrogen fertiliser, fortunately to carry me through to harvest this year. Since that time the wholesale gas price has doubled so why has fertiliser price increased threefold? If that’s not supply side profiteering then I don’t know what is.
Wheat hasn’t even doubled let alone trebled yet we are as farmers are supposed to be incredibly grateful.
When nitrate gets back down to £500 per tonne I might start taking notice. Until that time we are being taken to the cleaners.
 

frederick

Member
Location
south west
This time last year I bought my last load of nitrogen fertiliser, fortunately to carry me through to harvest this year. Since that time the wholesale gas price has doubled so why has fertiliser price increased threefold? If that’s not supply side profiteering then I don’t know what is.
Wheat hasn’t even doubled let alone trebled yet we are as farmers are supposed to be incredibly grateful.
When nitrate gets back down to £500 per tonne I might start taking notice. Until that time we are being taken to the cleaners.
Are you sure about your before and after wholesale gas prices.
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
Are you sure about your before and after wholesale gas prices.
If you smooth out the recent spikes over the last 6 months then compare that to the price in June last year it’s about double. With forward buying on their scale and a .£50 million grant from the government I would have thought CF could have limited price rises to a doubling.
We as farmers are told to use forward selling to smooth spikes. Why couldn’t CF use their forward buying power to at least stay in business producing fertiliser? Strikes me that such an essential product is too strategically important to be left in foreign corporate ownership.
 

crazy_bull

Member
Livestock Farmer
Location
Huntingdon
This time last year I bought my last load of nitrogen fertiliser, fortunately to carry me through to harvest this year. Since that time the wholesale gas price has doubled so why has fertiliser price increased threefold? If that’s not supply side profiteering then I don’t know what is.
Wheat hasn’t even doubled let alone trebled yet we are as farmers are supposed to be incredibly grateful.
When nitrate gets back down to £500 per tonne I might start taking notice. Until that time we are being taken to the cleaners.

Think it’s more than doubled?
3918ADCC-19AB-490B-B088-EF9F2ECBD460.jpeg
 

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