How High Will Fertilizer Costs Go For South Dakota Farmers?

Fertilizer prices remain one of the biggest question marks for South Dakota farmers heading into the upcoming growing season.

With all the volatility driven by global supply chain disruptions, energy prices, and geopolitical tensions, many South Dakota farmers are wondering just how high costs could climb.

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Fertilizer prices in South Dakota are currently experiencing a significant surge in March 2026, driven by global supply disruptions, with some retailers raising prices by $120 per ton or more.

Urea, a highly concentrated nitrogen fertilizer, has increased by 12% to around $674 per ton, while anhydrous ammonia has jumped 7% to an average of $924 per ton, the highest level since May 2023.

Nitrogen-based fertilizers, which rely heavily on natural gas for production, tend to fluctuate with energy markets. When gas prices rise, so do input costs.

Meanwhile, phosphate and potash markets are influenced by international supply, with key exports coming from regions that have faced political instability and trade restrictions.

These factors have kept prices elevated compared to historical averages.

For South Dakota growers, the impact is significant. Higher fertilizer costs directly affect profit margins, especially for corn and soybean operations that depend on consistent nutrient applications to maintain yields.