With higher grain prices, farmers are facing higher fertilizer prices.
John Heard is as Soil Fertility Specialist with Manitoba Agriculture.
"I've seen the grain prices increasing and when grain prices increase, farmer demand increases," he said. "As farmer demand increases, that tends to shorten the supply and increase prices. We've seen that with nitrogen because nitrogen is directly related to corn yields and other things in the States. The Americans also have put some duties on imported phosphorus from Morocco and Russia. That is tightening supply of phosphorus."
Heard notes a good portion of fertilizer was applied in the fall when prices were lower. He adds many farmers purchased in the fall and are storing over the winter.