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Managing Fertilizer Price Risk

Phil Kenkel and, Bill Fitzwater (March, 2017)

Summary

This paper describes tools and strategies for managing fertilizer price risk. Research on cash purchase and warehousing strategies is examined to provide insights into the effectiveness of forward pricing and pre-purchase strategies. Other strategies including diversification into less fertilizer intensive crops, diversification across fertilizer product forms, and shifting fertilizer applications within and across crop years are described.