Crop prices

In 2001 several major North American ammonia producers unexpectedly curtailed some of their ammonia and urea production. These producers cited over-capacity and low demand that were caused by adverse weather conditions and depressed crop prices. Although many plants take periodic shutdowns, the combination of import competition that depressed prices and very high feedstock costs in many industrialized countries during 2000 resulted in shutdowns of... 

Total DAP/MAP demand has remained between 4.0 and 4.5 million tons since the early 1990 s. Demand declined by 3% in 2001, but is expected to recover in 2002 due to an increase in com plantings. Demand should remain near this level or increase slightly in the medium term due to the 2002 Farm Bill in the United States. This bill will support crop prices near 2002 levels through favorable loan rates. Ammonium phosphate use declined at a rate of 15% from 1996 through 2001. It is expected to grow at a rate of 3% from 2002 through 2005239. 

Figure 1. Commodity crop prices in dollars of the year. (Source IMF).

Correlations between crop yield and price were calculated using actual crop yields and their respective crop prices (Table 4). Correlations between crops were also calculated using the actual recorded crop yields from the VICMS II data correlating the com yield to other crops in the sequence (i.e., soybeans in the 2-year sequence and soybeans, oats, and alfalfa in the 4-year sequence Table 5). 

Control over the supply of the biochemical independent of the availability of the plant because of natural disasters, inappropriate local climate, political concerns, acts of war, lack of geographic proximity, high crop prices, soil conditions, and so on. 

Depressed crop prices resulting from grain surpluses and acreage reduction programs in the developed markets have contributed to a decline or stagnation in fertilizer use. 

Agronomic factors such as residual phosphorus in the soil reduced the need for additional phosphate applicatim, especially during the 1980s when crop prices were falling. 

Depressed crop prices and acreage reduction programs seem to have contributed to an annual decline of 2.8% in fertilizer use in North America during the 1980s. Residual phosphorus in the soils may have also allowed farmers to reduce phosphate consumption without adversely affecting crop yields. Phosphate use decreased in all three regions of the developed markets (Table 3.10). 

Unlike Asia, Latin America experienced considefaSe policy instability and an unfavorable policy environment. Ad hoc policy changes were introduced in several countries. Debt crisis, currency depreciation, and declining crop prices also contributed to fluctuations in fertilizer use. Mexico, Brazil, and Venezuela have removed fertilizer subsidies. Because these changes were not met by the availability of increased credit funds for farmers and dealers, they had an adverse impact on fertilizer use. However, it is expected that improved incentives and better financial arrangemente may accelerate growth in fertilizer use in the 1990s [6]. 

Compare the farm-gate price with the international crop price or VCR value with the strategic issues. 

It has been proven that a favorable ferdlizer crop price ratio stimulates food production and high returns. Therefore, if crop prices cannot be raised, the only solution is to lower fertilizer prices. This is accomplished by applying fertilizer subsidies. The most common forms of subsidies are ... 

Food crop prices are expected to remain high in 2008 and 2009 and then begin to decline as supply and demand respond to high prices however, for most food crops, prices are likely to remain well above 2004 levels through 2015 (World Bank 2008d). 

Cost. Pesticides (including herbicides, fungicides and insecticides) are expensive when they are first marketed, partly to cover the very high developmerrt costs. Once they are off patent costs usually fall. Cost can significarrtly affect product choice and rate used, especially if crop prices are low. 

It commands crop prices of 3.00/lb of seed paid to the grower ... 

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