A jump
in fertilizer and pesticide prices will likely contribute to a surge in ag
production costs for China in 2018, according to Tang Ke, director of the ag
ministry’s market and economic information department. Domestic urea prices are
up 34 percent from year-ago levels while compound fertilizer prices are up 17
percent, he stated.
Plus,
ag machinery prices and environmental protection costs are on the rise, which
means after two nearly steady years, "agriculture production costs in
China are expected to go back to a relatively fast rising channel in
2018," Tang stated. He detailed corn production costs are expected to rise
2.8%, rice 2.4% and wheat 2%. The government is working to make sure fertilizer
supplies are adequate and stable ahead of planting season, as a gas supply
crunch has caused supplies of urea and other gas-based fertilizers to dwindle.