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Add potash and urea to the list of things America might want to start producing again.
Both are much used by farmers in fertilizing soil. And China, where most potash and urea is currently sourced from, has banned their export through 2022, according to The Wisconsin State Farmer.
The move is likely to increase food prices, at a time when inflation is already running rampant at levels not seen in 30 years.
“Growers are going to feel it,” noted John Ezinga, vice president of agronomy at Michigan Agricultural Commodities Inc. “Look at your ratios on corn: N, P, K. It’s way out of whack right now.”
Prices of urea, DAP, MAP, and potash, ingredients commonly used to enrich soils, are all up 59% or more from 2020.
Some reports say that China is restricting fertilizer exports to protect domestic supplies and take advantage of higher raw material prices.
But Enzinger said there’s another factor involved.
“We’re in a trade war. You’ve got a supply-restricted market today. Ten to 12 years ago, you had a demand-led market with some supply constraints. Logistics is a mess, but I feel pretty comfortable that we’re going to have the supply in the U.S. It’s just—at what price?”
Potash and the First U.S. Patent, Issued in 1790
Here’s a fun fact: Samuel Hopkins received the first numbered US Patent in 1790, for his innovative technique of producing potash by re-burning ashes in a furnace.
The patent was signed by George Washington.
Potash is a good source of soluble potassium, one of the three main plant macronutrients along with nitrogen and phosphorus.
In modern times, most potash is obtained via mining and industrial refining and production. Sources of potash can be found the world over. But China is one of its leading makers and exporters.
Urea, another crucial fertilizing agent that adds nitrogen to soils, has a place in the annals of history, as well. It was the first organic compound ever to be artificially synthesized through chemical processes, with the help of inorganic compounds.
There is no reason why common fertilizing agents can’t be produced stateside. The fact that U.S. farmers currently rely so heavily on importing the crucial agricultural agents from China is obviously proving to be a serious problem.
But it may also be an entrepreneurial opportunity for domestic companies.
“Fertilizer prices have increased dramatically in recent years, and the news coming from China will more than likely help this trend continue,” said Theresa Sisung, field crops specialist for the Michigan Farm Bureau. “Farmers should talk to their retailers sooner rather than later to discuss their options for purchasing fertilizer for their 2022 crop needs.”