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By Josh Smart
Carrot growers are breathing a sigh of relief that the global fertilizer shortage is largely over. But unfortunately, the shortage has been replaced by instability and uncertainty. While carrot farmers may see falling fertilizer prices, they shouldn’t be misled regarding the larger financial picture surrounding the fertilizer market.
Granted, phosphoric acid production is forecasted to increase by 7 percent and urea capacity to increase by 2 percent in 2023. At the same time, potash production is anticipated to decline by 14 percent. And yet, this unfortunately is not the whole story.
The shortage began with the Russian war on Ukraine when the world’s largest producer of fertilizer began having trouble exporting its products due to sanctions against the country. Over time, it turned out that the impact was not as severe as anticipated and more fertilizer became available. However, supply is still unpredictable.
In addition, a strong percentage of fertilizer products are going through a de-carbonization process which is affecting their production levels.
All things considered, if farmers wait too long to buy fertilizer for the upcoming season, they run the risk of supplies running out.
To help carrot farmers mitigate risk in this volatile market, while still ensuring a healthy crop, here are four key strategies.
Engage crop rotation.
To nurture healthy soil, crop rotation is a well-proven strategy. Rotating different carrot types to other land areas helps even out the varying levels of moisture that the varying carrot types, with their different root sizes, pull from the ground. In addition, varying produce types will affect the pH of the soil differently, whereas healthy soil shouldn’t be too acidic or too alkaline. When crops are rotated, soil remains strong and healthy, thereby requiring less fertilizer to grow carrots.
Manage input costs broadly, beyond fertilizer.
When crops are managed well,backfill soil costs are reduced. And when variables such as high temperatures and drought are taken into consideration, crop rotation strategies can succeed.
Monitor contract pricing.
Just like a long-term financial investment, the same approach should be applied to contract pricing. All carrot contracts should be constantly re-evaluated, taking into account changing variables and opportunities. For example, farmers may want to consider things such as specialty crops.
Consider this. It might cost one price per acre to raise carrot crop A, including seed, fertilizer, diesel, etc., while carrot crop B costs significantly more per acre to produce. In the short term, it seems that crop A is the way to go. But what if that crop is significantly harder on the soil, which will then impact the size and quality of future crops? These types of decisions must be evaluated with a bigger picture economic mindset.
Manage weeds.
In addition to the difficulty caused by unstable fertilizer costs, many carrot growers are dealing with the challenge of weeds. Unfortunately, there are many places where weeds have become resistant to some herbicides and now require more energy and time to control. For example, it may be necessary to allow for a break in the seedbed and/or break up the soil if it is harboring disease.
Fluctuating fertilizer prices and supply chain challenges are not anticipated to settle down any time soon. As a result, running a successful carrot growing business requires planning, growing strategies and actively evaluating different financial options. For now, growers shouldn’t wait too long to purchase their next batch of fertilizer.
About the author: Josh Smart is the North American practice leader and chief sales officer for agribusiness, food and cannabis with HUB International and is responsible for leading the strategic initiatives around growing and supporting the agribusiness segment.
