In 2026 farmers around the world face volatile fertiliser prices and uncertain supplies. Economic analyses from Texas A&M AgriLife Extension show that fertiliser prices began rising again in the second half of 2024 and were 10–20% higher than a year earlier. Trade restrictions on urea and phosphate exports in 2025 and tariffs on nitrogen imports limited supplies and drove prices up. The outlook for 2026 is clouded by geopolitical shocks. When war in the Middle East shut the Strait of Hormuz, Reuters noted that fertiliser plants were forced to close and shipping routes were disrupted, causing urea prices to jump from about $516 to $683 per tonne. Analysts warned that if the Gulf closure persisted, nitrogen prices could roughly double to levels last seen during the 2022 price spike. High natural gas prices and lingering trade uncertainties mean fertiliser will likely remain expensive.
These cost pressures squeeze farm profitability because fertiliser is one of the largest input expenses. The urea‑to‑corn price ratio climbed to 127.74 at the start of 2026—four percent higher than the average for the previous three years and about 15% higher than a year earlier. In other words, producers must harvest more grain just to pay for the same amount of nitrogen. With margins tight, there is less room for over‑application or guesswork. Precision agriculture is therefore not a luxury; it’s a necessity.
Precision Tools: Applying Fertiliser Exactly Where It’s Needed
Precision tools help farmers apply fertiliser exactly where it is needed. Soil testing provides baseline nutrient information so that crops receive the right amount of nitrogen, phosphorus and sulfur rather than a blanket application. Dawson Agriculture’s soil‑testing program emphasises that the soil is the foundation of every cropping and fertiliser decision and that knowing what you’re working with allows you to apply the correct treatments even when input costs are high. NDVI (Normalised Difference Vegetation Index) mapping uses satellite or drone imagery to reveal areas of crop stress, while electromagnetic (EM) surveys map soil variability. These data layers enable variable‑rate application maps that adjust fertiliser rates across a paddock to maximise yield while minimising waste.
The Cost Savings Are Significant
A Texas A&M study found that deep soil testing—sampling down to 6–24 inches—before planting corn, cotton or wheat could save $13–$189 per acre by accounting for residual nitrogen. By sampling deeper and adjusting fertiliser accordingly, producers avoid paying for nutrients already present in the soil. NDVI‑guided variable‑rate applications further reduce input use by targeting fertiliser to stressed areas. Together, these precision practices improve profitability and buffer farmers against price spikes and supply disruptions.
Getting More from Less Is No Longer Optional
In a high‑fertiliser‑price era, the question is not whether farmers can afford precision agriculture, but whether they can afford not to adopt it. By combining soil testing, NDVI mapping and EM surveying, growers gain the data needed to make smarter decisions, optimise fertiliser use and maintain yields—even when urea prices soar and supplies tighten. The current environment underscores a simple truth: getting more from less is no longer optional; it’s the path to resilience.
Ready to take the guesswork out of your fertiliser spend? Talk to the Dawson Ag team about soil testing and precision agronomy for your operation.
