Rising Input Costs: How Fertilizer Prices Impact Arizona Agriculture

Gabriel Flores
Apr 21
3 min read

Written by Gabriel Flores, Government Relations Intern

Farming doesn’t just depend on weather; it depends on inputs. And right now, one of the most important inputs, fertilizer, is becoming more expensive due to global pressures.

While fertilizer may not always be visible to consumers, it plays a critical role in agricultural production. It supports crop growth, improves soil productivity, and helps farmers achieve the yields needed to sustain their operations. Without it, maintaining consistent production becomes significantly more difficult.

Why Fertilizer Matters

Fertilizer is not an optional expense; it is a foundational part of modern agriculture. Whether producing hay, grains, or specialty crops, farmers rely on it to maintain soil nutrients and ensure healthy plant growth.

When fertilizer use is reduced, the impacts are immediate. Crop yields can decline, quality may suffer, and overall productivity drops. These effects do not just stay on the farm; they ripple throughout the food system.

What’s Driving Costs Up

The rising cost of fertilizer is largely being driven by factors beyond the farm. Global disruptions, including geopolitical tensions and supply chain challenges, have tightened availability and increased prices.

In addition, fertilizer production is highly energy-intensive. As energy costs rise, so does the cost of producing and transporting fertilizer. These pressures combine to create a situation where farmers are paying significantly more for the same essential input.

Real Impacts on Farmers

Recent insights from the American Farm Bureau Federation highlight just how serious this issue has become.

Zippy Duvall, President of the American Farm Bureau Federation, recently shared that he made the difficult decision not to purchase commercial fertilizer for his hay fields this year due to rising costs.

“That decision doesn’t stay on paper. It shows up in the field.”

Without fertilizer, yields are expected to decline, meaning fewer resources available to feed livestock and sustain operations. And his situation is not unique.

According to a national Farm Bureau survey, 70% of farmers reported they could not afford all the fertilizer they need, and 94% said their financial situation has worsened or stayed the same compared to the previous year.

These numbers reflect a growing reality: farmers are being forced to make difficult decisions just to stay afloat.

What This Means for Arizona Agriculture

Challenges may be pronounced for Arizona producers. Maricopa County agriculture operates within a unique environment with limited water resources and high costs for inputs.

Arizona has many specialty crops that rely on careful management and steady supplies of various nutrients (inputs) to grow at optimum yields. Therefore, increased prices of fertilizer create significant pressure in an existing high-stress system.

Due to increased costs, farmers may reduce the amount of fertilizer used, change cropping plans, or pass along higher costs to consumers. All of these actions can cause negative impacts to production and long-term profitability of Arizona agriculture.

The Bigger Picture

Farmers do not just affect their individual operation when they cut back on their inputs, such as fertilizer. When farmers cut back on their input usage, their yield will be reduced, thus supplying less food through the entire food system. This reduced amount of food supplied can lead to inflation over time and a reduction in the amount of food being made available to society.

Agriculture's production activities are part of a larger economic system and eventually have impacts on consumers. Understanding the stresses on agriculture will create a better understanding of how food is produced and what factors influence the cost of food.

Moving Forward

Farmers have seen their share of uncertainty when it comes to growing crops; there are always changes in weather conditions/market requirements/consumer preferences, which require adaptation* for the farmer to remain productive. Presently rising costs of inputs, particularly fertilizer, have demonstrated how crucial a stable supply chain is to the viability of agriculture as an industry.

Decisions made by large companies/organizations at a worldwide level directly impact how a farmer makes decisions about his/her farming operation here in the US.

The Bottom Line

In conclusion, while many do not give any thought to fertilizer being integral to the global food system, fertilizer is being used in new & innovative ways; with each passing day, this will continue to be true. As fertilizer continues to increase in cost, farming operations' ability to produce food will be challenged; this will create additional dilemmas not only for individual farmers but for society as a whole.

Being aware of these challenges will help demonstrate how valuable agriculture is and how difficult it can be to produce food on a daily basis.