Market Trends of north america fertilizers Industry
The financial support by the government, such as subsidies, has contributed to the expansion of field crops
- A wide array of crops are grown on North American farms, mainly covering field crops. Corn, cotton, rice, soybean, and wheat are some of the dominating field crops across the region. The United States, Canada, and Mexico are major contributors to the region's agricultural output. In 2022, field crops covered around 97.6% of the overall cultivation in North America, with cereals and oilseeds dominating the market.
- The United States dominates the market, with 135.7 million hectares of the overall area under crop cultivation during the study period. Field crops and horticulture cover the majority of the area, and they accounted for shares of 97.2% and 2.8%, respectively, in 2022. However, during 2018-2019, the country witnessed a significant dip in crop acreages, mainy due to unfavorable environmental conditions that resulted in heavy floods in areas like Texas and Houston.
- The most cultivated crop is corn, the majority of which is grown in a region known as the 'Corn Belt' traditional area in the midwestern United States, roughly covering western Indiana, Illinois, Iowa, Missouri, eastern Nebraska, and eastern Kansas, in which corn (maize) and soybeans are the dominant crops. It is the major rice exporter, and rice cultivation in the region is mainly concentrated in 4 regions, with three in the South and one in California. Therefore, the increased market potential for the region's field crop, coupled with the increased government funding and protection, is anticipated to positively drive the area under field crop cultivation in the region.
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Among all the primary nutrients, nitrogen is applied in a higher quantity to field crops, which is equivalent to 229.8 kg/hectare
- Field crops, including rice, corn/maize, wheat, and rapeseed/canola, rank high in nutrient consumption in the region. In 2022, rice led the pack, consuming around 140.85 kg/hectare of primary nutrients, closely followed by rapeseed/canola at 118.40 kg/hectare. Cereals, being extensively cultivated, exhibit a higher appetite for nitrogen-based fertilizers. This intensive cultivation depletes soil nutrients, necessitating increased fertilizer application for optimal growth.
- Nitrogen dominates the primary nutrient usage, accounting for approximately 74.0% in 2022, translating to 229.8 kg/hectare for field crops. Despite this, nitrogen deficiency remains a significant concern in the region. Consequently, nitrogen supplements are predominantly provided through soil application. Once in the soil, nitrogen converts into mineral nitrate, facilitating easy absorption by plants. Notably, rapeseed, a key nitrogen consumer, enjoys widespread cultivation in the United States.
- Rapeseed finds industrial applications, notably in the production of oils for lubricants, hydraulic fluids, and plastics. While fertilizer usage hinges on soil quality and rainfall patterns, rapeseed's nitrogen requirements typically range from 100 to 150 lbs./acre. Phosphorus and potassium fertility rates exhibit soil-dependent variations, yet the recommended rates, as per AgMRC, span from 0 to 80 lbs./acre and 0 to 140 lbs./acre, respectively.
- Given the pivotal role of primary nutrients in crop nutrition, their application rates are poised for a significant uptick in the coming years, driven by concerns like soil depletion and leaching.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Agriculture extension services provided by the government to farmers are expected to drive the cultivation area under horticulture crops.
- Micronutrient consumption is higher in the cabbage crop
- Cabbage, tomato, and cauliflower are among the major nitrogen-consuming crops in North American countries
- Magnesium and sulfur were the major secondary macronutrients consumed by vegetable crops
- Raising micronutrient deficiencies and crop losses increase micronutrient application rates
- Among all the primary nutrients, nitrogen is applied in a higher quantity to field crops, which is equivalent to 229.8 kg/hectare
- Calcium is the most important nutrient required by crops as it helps strengthen the cell walls and reduce bruising and diseases in field crops
- Government policies and financial support are leasing to the increase in the irrigation area in the region
