Consequences of Skyrocketing Fertilizer Prices

Josh McGill Economics, Nutrition

By Ariel Singerman and Stephen H. Futch Chemical input prices have increased significantly over the last year. In particular, the price of fertilizer has roughly doubled during the last 12 months, as denoted by Figure 1. Figure 1. Producer Price Index of Nitrogenous Fertilizer Manufacturing Source: Federal Reserve Bank of St. Louis Supply and demand factors help explain such an …