January 25, 2001

Skyrocketing natural gas prices could hike nitrogen fertilizer prices enough to cause a big acreage shift from corn to soybeans, according to an Ohio State University economist quoted in BRIDGE NEWS. High prices and shortages of nitrogen could add to the attraction of soybeans, a nitrogen-fixing legume which also has a more generous federal support price.

The Ohio State economist, Allen Lines, told BRIDGE that enough acres might shift that both corn and soybeans would sell for $3.00 per bushel. That would be unprecedented and far away from most current price projections by other economists. But Lines notes many farmers are having trouble getting nitrogen fertilizer at any price.