As noted, AFPC’s study shows farmers are currently facing nitrogen costs 80% higher than last year. That’s as Anhydrous Ammonia prices reached 2008 levels in October at over 1,000 dollars per ton. And those prices have been steadily rising ever since. “You’re talking fertilizer price that have gone up somewhere close to $200 an acre for this next year for some producers, and the revenue being generated is not offsetting that. And that’s just the fertilizer industry,” says Edgington. “That’s not even talking about the chemistry industry or land values or equipment that people can’t get. There is a big, big cash flow crunch coming. And the banking industry is nervous about it as well, as they watch what has been a pretty good year for agriculture could absolutely go completely backwards in this next growing season in a big way.”
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