Fertilizer Costs Remain Key Concern as Farmers Plan 2026 Nutrient Strategies
Rising fertilizer costs, tighter profit margins, and a growing focus on sustainability are shaping how U.S. farmers approach nutrient planning for 2026, according to new survey data from University of Illinois ag economists.
Illinois corn producers are expected to spend about $229 per acre on fertilizer in 2026, while soybean growers will allocate around $61 per acre, according to a recent survey led by agricultural economists Gary Schnitkey and Nick Paulson. These figures represent a slight increase over 2025, reflecting not only persistent input cost inflation but also shifts in farmer sentiment and agronomic strategy across the Corn Belt.
According to Schnitkey, certain farmers received price quotes for anhydrous ammonia in early September ranging between $730 and $740 per ton.
Despite falling from their 2022 peaks, fertilizer prices remain high relative to crop prices, prompting strategic adjustments. "If you go back and compare anhydrous ammonia prices to 2017-2020 levels, they're still elevated - yet corn prices are roughly the same," notes Schnitkey. This cost imbalance is forcing many farmers to reconsider the profitability of corn versus soybeans.
Paulson notes that farmers have experienced a notable jump in DAP prices this year, moving from the low $800s to the upper $800s per ton within the current calendar year.
Some growers received early September bids for anhydrous ammonia in the $730 to $740 per ton range. Prices for DAP have risen from the low $800s to the high $800s this year, while potash has rebounded from the mid-$400s to the upper $400s, University of Illinois data show.
Paulson explains that potash prices dropped sharply mid-last year but have since been climbing steadily, rising from the mid-$400s to the upper $400s per ton in recent months.
To manage costs, many farmers are leveraging forward purchases and volume discounts - the two most common pricing strategies cited in the survey. A notable 44% of respondents seek quotes from at least two different retailers, and 24% from three. Although most purchases are made through one or two suppliers, farmers often gather pricing data from multiple sources to improve their bargaining position.
When it comes to nitrogen application decisions, 33% of farmers rely on three or more sources of information, with tools like the Maximum Return to Nitrogen (MRTN) calculator gaining traction. This model helps determine the most profitable nitrogen rate based on both crop response and market conditions.
Farmers had the option to choose multiple pricing strategy categories, reflecting the diverse approaches they use to manage fertilizer costs, according to the University of Illinois.
In terms of application timing, nutrient losses top the list of farmer concerns, followed by fertilizer prices and spring weather. Fall applications of anhydrous ammonia remain common, but experts stress the need for nitrogen stabilizers - an investment of $14-$15 per acre - to reduce environmental losses and protect yields.
(University of Illinois; farmdoc)
Importantly, farmers are also increasingly attuned to broader industry trends. The survey revealed rising awareness of retailer consolidation, a dynamic that could impact competition and pricing transparency in local markets.
The survey highlighted that nutrient losses are becoming a more critical factor in how farmers determine the timing of their fertilizer applications.
Ultimately, nutrient management in 2026 will require a more data-driven, cost-conscious approach. As farm operations look to maximize return on investment while addressing environmental accountability, fertilizer decisions will remain at the intersection of profitability, sustainability, and supply chain resilience.
According to the data, 57% of farmers make fertilizer purchases from two or more different retailers, indicating a trend toward supplier diversification.
