what are farmers option with high fert prices

There are really only a number of limited options farmers have to cope with rising fertilizer prices:

1. Buy and hold fertilizer shares.

2. Buy out as far as is possible and physically take delivery of either n, P and/or K needs. Every pointer is suggesting a tonne of fertilizer bought today, will cost you more tomorrow. You only have to beat the cost of money and that has been a piece of cake to date. You also avoid the risk of shortages impacting your cropping program.

3. Build stocks of legume seeds in case nitrogen shortages are realised. This at least gets rid of the need for nitrogen fertilizer however does not solve your phosphate and potash needs.

4. Own natural gas futures - this is only a rough hedge against hyperinflating nitrogen prices.

5. Sell the farm - you might laugh but many will take this option. In which case someone replaces them and still needs to use fertilizer in any case.