Fertilizer Prices Expected to Increase

Last year most landscape and lawn care professionals noticed rising prices at the gas pump. And while gas prices and fertilizer don’t seem directly connected, natural gas used for heating and cooking is a key element of urea production—the primary form of synthetic nitrogen used in most lawn fertilizers. Consequently, lawn and landscape professionals saw higher fertilizer prices in 2004, and expect prices to continue to increase.

Many manufacturing and lawn care service companies are already feeling price pressures. LESCO has said that fuel and natural gas prices, as well as transportation costs, are more expensive this year. The raw materials have a "high price tag", and some of the costs will be passed on to customers. Other manufacturers, like Lebanon Turf and Best Turf Fertilizer, have also noticed sharp price increases. They report that increasing prices is an international concern.

Contractors are working out plans to pass increased costs to customers without straining relationships with them. "The challenge," said one vendor, "… is to raise prices and take a chance on losing clients, or not raise prices and take a hit on the bottom line."

Some industry representatives say there are ways contractors can manage costs other than charging higher prices to customers. Contractors can: 1) know exactly what and how much material needs to be put down; 2) use soil testing to determine what the correct levels are for phosphorus and potassium; 3) keep soil pH in proper ranges to maximize turfgrass absorption of nutrients. Also, some lawn care professionals may want to consider using combination products with fertilizer and weed control. Prices for these products have had smaller increases than for fertilizer, and their popularity is rising. They may be viable options for price-conscious professionals and their customers.

The preceding information is summarized from information published by Lawn & Landscape, February 2005.