Farmers and ranchers in California are complaining that their state’s fertilizer industry is going bankrupt, with fertilizer companies and fertilizers suppliers unable to meet rising demand.
The state has already experienced a shortage of fertilizers and growers are facing rising costs for the same fertilizers, the California Farmers Union reported Wednesday.
The union reported that the shortage has caused a shortage in the state’s top fertilizer market, which is home to some of the country’s top fertilizers producers and suppliers.
The fertilizer market is in the middle of an expensive drought and it is likely to continue to be so for several months, the union said.
“There’s a real concern about this being a long-term problem,” said David McQuaid, the president of the California Growers and Food Service Association, a union representing growers and food processors.
He said that there are more than 50 companies that provide fertilizers to the state, and that they need to be supplied by farmers, ranchers and processors to keep the industry functioning.
The California Grower’s Association said it is working with its members to increase supplies and services.
It is a situation that farmers and rancher groups across the state are beginning to see as a result of the drought, said Scott Tully, the association’s president.
“We are seeing the effects of the extreme drought on the fertilizer industry.
It’s hard for a company to make money,” Tully said.
Tully and other growers and processors are also seeing prices rise for fertilizer at the wholesale level, which has been an area of the industry where growers have been struggling for years.
The wholesale price of a 1,000-pound container of fertilizer dropped to $9.99 in May from $12.99 a year earlier, according to the California Association of State Extension Agencies.
“In a lot of cases, you can see an increase in prices of $50 to $100 per ton,” Tull said.
The price increase has made it difficult for many farmers to continue growing and selling their crops.
“A lot of farmers are not able to keep up with their payments,” Tulley said.
That has put the squeeze on consumers.
The Associated Press contributed to this report.