Fertilizer Markets: Facts and Context

Mosaic is committed to producing high-quality phosphate and potash fertilizer products and will continue to support the farmers who rely on our products to help feed a growing global population.

We are acutely aware of the current challenges facing American farmers. American farm prosperity is a critical element of global food security. The success of our North American business has always been and continues to be closely correlated to the success of American farmers.

For our United States customers and the farmers they support, we are providing background information on the factors that affect commodity fertilizer prices and the current market conditions impacting our business.

 

The Three Main Fertilizers

Potassium is essential in nearly all processes needed to sustain plant growth and reproduction. Plants deficient in potassium are less resistant to drought, excess water, and high and low temperatures. They are also less resistant to pests, diseases, and nematode attacks. Potash is the most widely used source of potassium in agriculture, delivering this essential nutrient in a form that plants can readily absorb to support yields, crop quality, and efficient water use. Mosaic mines potash and produces potassium fertilizers like muriate of potash (MOP) and performance products like Aspire®.

Phosphorous is another key nutrient for plant structures and growth. It is required for the photosynthesis process, converting the sun’s energy into food for the plant. It is also required for strong root development. A plant must be able to access phosphorus to ensure a healthy growing cycle. Mosaic mines phosphate rock and produces phosphate fertilizers such as monoammonium phosphate (MAP), diammonium phosphate (DAP), and performance products like MicroEssentials®.  

Nitrogen is also essential for plant growth and is part of every living cell. It plays many roles in plants and is necessary for chlorophyll synthesis. Plants take up most of their nitrogen from products like ammonia and urea. Mosaic does not sell either ammonia or urea and, in fact, is a larger purchaser of ammonia, which we use to make phosphate products. Because the absence of nitrogen in the soil has the most immediate impact on plant growth, farmers tend to prioritize their nitrogen fertilizer purchases over potash and phosphates. As a result, in times of high ammonia prices, Mosaic experiences both higher costs and lower demand for our products.

 

Fertilizer Pricing Fundamentals

Fundamentally, our MAP, DAP, and MOP fertilizer products are commodities. The commodity phosphate and potash fertilizers we produce are made and sold by many suppliers around the world and traded globally. In 2025, for example, the U.S. imported phosphate fertilizers from at least 12 countries. It imported potash from at least four countries outside of North America.

As globally traded commodities, the prices for our commodity fertilizer products – like corn and soybean prices – are determined principally by global supply and demand conditions, rather than by any single producer like Mosaic. They rise and fall based on factors like disruption in supply or changes in demand on a global basis.  

We operate our potash and phosphate mines and production facilities 24 hours a day, seven days a week, and 365 days a year. We produce and sell our product year-round at prevailing market rates. 

In the U.S., our customers are wholesalers, retailers, and cooperatives. We do not sell directly to the American farmer, and we do not tell our customers what to charge farmers for our products.

 

Current Cost Pressures 

While we do not sell directly to the American farmer, the success of our business has always been and continues to be closely correlated to the success of the American farmers who are the ultimate consumers of our products. Rising fertilizer affordability challenges for U.S. farmers means less demand for Mosaic’s fertilizers.   

Sharp increases in the cost of key raw materials required to manufacture phosphate fertilizers – particularly sulfur and ammonia – have led to economic pressure for American farmers and Mosaic alike.  

Ongoing conflicts in Ukraine and the Middle East have also reduced sulfur production and dramatically increased the price that Mosaic pays for this critical input. Even before Ukraine began regular strikes on Russian oil assets in the fourth quarter of last year, the prevailing U.S. market price for sulfur had already moved to around $280 per tonne. To start 2026, it surged to approximately $500. Since the conflict began in the Middle East, we have seen prices as high as over $700 globally.   

Ammonia prices have also increased significantly. Mosaic, like the American farmer, is forced to pay the increased global price of ammonia.

As a result, Mosaic is operating in an environment shaped by reduced grower affordability and extraordinary input cost pressures.

 

Mosaic’s Commitment to Our Customers
and the American Farmers They Support 

Integrity and fair competition matter to our customers, the farmers we support, the communities in which we live and work, and to us.

As set forth in our Code of Business Conduct and Ethics, we earn business by creating value for our customers. Fair competition and antitrust laws ensure a level playing field for all businesses, encouraging innovation and better products and services for all. We never seek unfair advantages in the marketplace, and we never waver from our Code.