The Economic Research Service (ERS) has released its report, "Factors Contributing To the Recent Increase in U.S. Fertilizer Prices, 2002-08."
According to the report, U.S. prices of fertilizer nutrients began to rise steadily in 2002 and increased sharply to historic highs in 2008 due to the combined effects of a number of domestic and global long- and shortrun supply and demand factors. The prospect for strong fertilizer demand in early 2009, high raw material costs for the manufacture of fertilizers, production cutbacks and decreasing supplies from fertilizer imports, however, could put upward pressure on U.S. fertilizer prices in spring 2009.
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