Farmers Delay Fertiliser Buying for 2027
Yara International warns that fertiliser purchasing in Europe, the US and Brazil is lagging historical norms ahead of the 2027 season.
Updated on Nov. 2, 2026 in Organic Food
Farmers in Europe, North America and Brazil are delaying fertiliser purchases for the 2027 season, Yara International CEO Svein Tore Holsether said on the company's third-quarter earnings call. Yara reported third-quarter EBITDA excluding special items of $675m, down from $804m a year earlier.
Why it matters
Delayed buying leaves a significant volume of fertiliser still to be purchased before the Northern Hemisphere application season, and could become more consequential if supply remains constrained. Shifts in nitrogen supply and cost directly affect the price and availability of food production inputs.
Third-quarter EBITDA excluding special items fell to $675m from $804m a year earlier, while European fertiliser imports for the coming season are down around 30% year-on-year. It remains unclear whether affordability improvements will lift nitrogen demand in 2027 as the company anticipates.
The players
Yara International
A Norwegian multinational fertiliser company and one of the largest producers of nitrogen-based fertilisers in the world.
Svein Tore Holsether
The chief executive of Yara International who led the company's third-quarter earnings call and made the purchasing warning.
The details
Yara cited delayed fertiliser purchasing tied to Middle East supply disruptions, weaker crop prices earlier in the season and uncertainty over farmer affordability. Higher European gas costs, lower volumes and operational reliability issues also weighed on earnings, and widespread ammonia production curtailments in Europe were driven by high gas prices.
Timeline
2026: Nitrogen affordability improved compared with earlier in the year.
Third quarter 2026: Yara reported lower EBITDA amid higher gas costs.
Six months prior: Crop prices were weaker than current levels.
Northern Hemisphere application season: Significant fertiliser volumes remain to be bought before spring.
2027 season: Fertiliser purchasing is lagging historical norms.
Roadmap
Europe's ammonia output has been exposed to gas-price swings since the 2022 energy crisis, when high gas costs curtailed production across the continent. The current purchasing lag extends that pattern, with higher gas costs once again weighing on nitrogen supply and farm input affordability.
Farmers weighing fertiliser purchases now face a market where the timing and cost of nitrogen inputs can shape planting budgets for the 2027 season. Any shift in affordability ratios could affect what growers pay for the inputs that underpin crop production.
The takeaway
Farmers who are still planning their 2027 input budgets should track nitrogen affordability ratios closely, since supply constraints and gas-linked cost swings can change what fertiliser costs from one season to the next.
Further reading
Explore more on Organic Food as farmers weigh input costs and supply pressures.
Source note: This article includes information reported by AgNavigator.
