Question: Why do fertilizer prices increase every year?

Short Answer: Supply & demand, energy costs drive global fertilizer commodity prices.

Long Answer: Fertilizer is a world market commodity, which means that supply and demand factors in major markets around the world impact the price the U.S. pays for fertilizer. Average prices paid by the U.S. for the major fertilizer nutrients reached the highest level on record in January 2008, 130 percent higher than the January 2000 level according to the U.S. Department of Agriculture.

Supply and Demand Factors:

· Global Demand for fertilizer has placed upward pressure on fertilizer prices.

· The U.S. ethanol boom is driving fertilizer demand higher (more fertilizer for corn production), therefore placing upward pressure on fertilizer prices.

· Increased transportation costs to move fertilizer products is factoring into increased delivered fertilizer prices.

· The value of the U.S. dollar has fallen significantly in the past few years, increasing the cost of goods imported – including fertilizer.

· High natural gas prices in the United States continue to lead to higher fertilizer production costs, also leading to increased fertilizer prices.

Ethanol has increased U.S. nutrient demand for corn production. The annual capacity of the U.S. ethanol sector stood at 5.6 billion gallons in February 2007. Ethanol plants under construction or expansion are expected to add another 6.2 billion gallons of capacity. Farmers are responding to higher corn prices resulting from the increase in demand by planting more corn acres. One acre of corn needs the same amount of fertilizer nutrients as a 10,000sq.ft. lawn.

The top four fertilizer consuming countries in the world are China, India, United States and Brazil, respectively. As of 2005, the U.S. is importing more nitrogen than it produces and has closed 26 ammonia (nitrogen) plants since 1999 due to increased production costs.

What is Best Lawn Care, LLC doing to control costs? We cannot control market demand or prices for fertilizer nutrients, but there are several ways we will be keeping fertilizer costs as low as possible:

1) Shop several vendors and buy quality products in bulk to reduce cost.

2) Base nitrogen and potassium fertilizer use on recent soil tests.

3) Maintain soil pH to maximize the availability of both applied and native nitrogen and potassium.

4) Manage fertilizers, particularly nitrogen, with proper application rates and methods for the most efficiency.

5) Make sure no product goes to waste; you should get what you paid for. (Fertilizer left on driveways and sidewalks is money down the drain or storm sewer in most cases). We will make sure the product reaches and stays on the grass where it belongs.