State of the Fertilizer Industry: Volatility Still Exists, But Some Certainty Appears
During the 2025 growing season, the one sector of crop inputs that experienced the most chaotic performance was fertilizer. In particular, two buzzwords dogged the marketplace throughout the year — price and tariffs.
Prices were the most important factor impacting the fertilizer industry during 2024-25. In fact, according to Josh Linville, Vice President of Fertilizer at StoneX, the average costs for growers to afford to apply most fertilizer types during this timeframe was mind-boggling.
“In 2023, it cost growers 55 bushels of corn to apply one ton of urea,” said Linville, speaking at the 2025 Agricultural Retailers Association (ARA) meeting in early December. “One year later, that same one ton of urea cost the equivalent of 155 bushels of corn.”
Despite this fact, the overall market performance for the fertilizer category during 2025 didn’t suffer much in terms of revenues. According to data collected in the 2025 CropLife 100 survey, the fertilizer category saw its overall revenues remain relatively flat for the year. Sales for 2025 came in at $19.9 billion — the identical sales figure that the category recorded the year before. In addition, the category was able to hold onto its overall market share among the nation’s top ag retailers vs. all the other crop inputs and services categories at 46%.
Part of the reason for this, said Linville, is the fact that fertilizer prices have moderated significantly from their 2024 highs. “Today, for a grower to apply one ton of urea, it is costing them 75 bushels of corn,” he said. “That’s much closer to the traditional average than it has been.”
Tariffs Relief
In terms of tariffs, fertilizer market watchers have been very concerned that these could negatively impact the overall industry. As Linville pointed out, the majority of urea comes into the U.S. from Russia. For other key macronutrients, major suppliers are Canada (potash) and China (phosphates). In recent months, all three of these countries have been targeted by the Trump Administration with reciprocal tariffs.
During this entire time, key agricultural trade associations such as the American Soybean Association have lobbied the administration to exempt critical fertilizers from these tariff costs. And in mid-November, President Donald Trump signed Executive Order 14257. This amended the Hammond Tariff Schedule of the U.S. to add diammonia and monoammonia phosphates (DAP and MAP) as well as potash to the annex of products not subject to tariff duties.
The ag industry responded to this news with thanks. “These designations are a major step forward for American agriculture and supply chain resilience,” said ARA President and CEO Daren Coppock in a statement. “Potash and phosphate are essential crop nutrients that support food production across the country. Recognizing their critical importance will help strengthen domestic production and encourage investment.”
Corey Rosenbusch, President and CEO at The Fertilizer Institute, says: “The fertilizer market is highly competitive and characterized by a complex web of global supply and demand factors. While the U.S. has domestic fertilizer manufacturing and production, it is a net fertilizer importer and relies on both domestic production and imports during busy spring planting and fall application periods.”
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