Nitrogen Fertilizer Sources: What Does The Future Hold for Citrus Producers?
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Nitrogen Fertilizer Sources: What Does The Future Hold for Citrus Producers?

   

Nitrogen Fertilizer Sources: What Does The Future Hold for Citrus Producers?1

Tom Obreza, Larry Parsons, and Kelly Morgan2

Introduction

Florida citrus growers are well aware that nitrogen (N) is the single most important nutrient applied as a fertilizer to assure maximum yield and fruit quality. Most growers are probably also aware of the substantial N fertilizer price increases that have occurred during the past year (Table 1 ). Ammonium nitrate, the workhorse N fertilizer used by citrus growers for decades, has had the greatest leap in cost. Typical questions on the minds of growers these days are: why has this happened, will it continue, and will economics force a change in the type of N fertilizer we use?

It's all about natural gas

Ten years ago, the U.S. was the world's largest exporter of N fertilizer; now we are the largest importer. More than half the N our farmers now use comes from places like Trinidad, Russia, and the Persian Gulf rather than the Midwest or Southeastern U.S. Why are we importing so much? It all starts with production of anhydrous ammonia (NH3), from which almost all familiar solid N fertilizers like ammonium nitrate are made. Ammonia is produced by combining N from the air with hydrogen at high temperature and pressure. The hydrogen is derived from natural gas, which accounts for around 80% of the production cost. Natural gas prices have been destabilized by increased competition (electric power generation, home heating) in the long term and the Gulf of Mexico hurricanes in the short term. This situation has put massive stress on the fertilizer industry. Since natural gas is so much cheaper in other parts of the world, ammonia producers in the U.S. have not been able to compete, so many of our domestic production facilities have shut down or closed for good. For example, the price of natural gas in the U.S. is around $10 per million Btu. Worldwide, the price is around $2 in Trinidad, $0.80 in Russia, $0.70 in Venezuela, and $0.60 in the Middle East. With recent record high prices for crude oil and natural gas, it is predicted that we are not likely to see lower N fertilizer prices anytime soon. It does not take an economics scholar to realize that, unless alternatives are found, our future demand for N fertilizer will increasingly be met by imports.

What kind of N is being imported?

Ammonia imports to the U.S. increased from 4.2 million tons in 2000 to about 7.6 million tons in 2003, but urea imports increased even more. Although NH3 is still the form of N preferred in this country, it must be stored under pressure and is expensive to keep in large quantities. Urea, on the other hand, is relatively cheap to move and easy to store. While NH3 is not going to disappear by any means, urea is emerging as the N source preferred by overseas shippers.

What effect will this have on N fertilizer choices?

The future of our ammonium nitrate supply is in doubt for several reasons. First, its storage is a security issue due to its explosive nature. Second, it cannot be shipped long distances because it does not hold up well in high humidity. Third, it is unclear as to how much imported ammonia can be converted to ammonium nitrate considering the degree to which domestic production has been curtailed. Citrus growers used to applying ammonium nitrate in their groves may find themselves in an economic quandary in the near future. Ammonium nitrate will not disappear, but restricted availability may make the price of alternative N sources much more attractive. This possibility brings up the next question: Do we need to manage these materials differently?

Managing water-soluble N fertilizers

The two major, non-specialty, water-soluble N fertilizer alternatives to ammonium nitrate are ammonium sulfate and urea. While ammonium sulfate has been commonly used to fertilize Florida citrus for many years, urea applied as a solid material has not. Let's briefly compare and contrast these materials and ammonium nitrate with respect to properties that affect how they should be managed to fertilize citrus:

Let's see all that in a nutshell

Economics and fertilizer availability may cause Florida citrus growers to re-think the selection and management of N materials. Limited availability or high cost of ammonium nitrate will likely stimulate increased use of ammonium sulfate or urea. Growers must be aware of the different properties and behavior of these fertilizers, and should be prepared to change some management practices, if necessary, to maintain high fertilization efficiency.

Tables

Table 1. Changing costs of three N fertilizer materials in the southeastern United States.

Material


October 2005

October 2004

Cost per ton ($)

Cost per lb of N ($)

Cost per ton ($)

Cost per lb of N ($)

Ammonium nitrate (34% N)


275 - 285

0.41

200 - 205

0.30

Ammonium sulfate (21% N)


165 - 168

0.40

160 - 165

0.39

Urea (46% N)


295 - 305

0.33

245 - 250

0.27


Footnotes

1. This document is SL-238, a fact sheet of the Soil and Water Science Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. Original publication date February, 2006. Visit the EDIS Web Site at http://edis.ifas.ufl.edu.

2. Tom Obreza, professor, Soil and Water Science Department, Gainesville, Larry Parsons, professor, Citrus Research and Education Center, Lake Alfred, FL; and Kelly Morgan, assistant professor, Southwest Florida Research and Education Center, Immokalee, FL; Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611-0290.


The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. For more information on obtaining other extension publications, contact your county Cooperative Extension service.

U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean.



Copyright Information

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