Managing High Fertilizer Costs: Making Every Pound of Nitrogen Count

October 1, 2026

Managing High Fertilizer Costs: Making Every Pound of Nitrogen Count

A new UNL series exploring practical strategies for managing fertilizer costs

By Javed Iqbal - Extension Nutrient Management and Water Quality Specialist, Bijesh Maharjan - Extension Soil and Nutrient Management Specialist, Aaron Nygren - Extension Educator, Guillermo Balboa - Research Assistant Professor, Nutrient Management and Digital Agriculture, Nicolás Cafaro La Menza – Cropping Systems Specialist, Department of Agronomy and Horticulture

Tractor applying inputs across rows of young corn plants in a field, with equipment visible in the background.

A new series on CropWatch addresses high fertilizer costs, starting with practical strategies to get more value from every pound of nitrogen applied.

Shutterstock

Key Takeaways
  • Recalculate your N rate. Higher fertilizer prices can shift the economic optimum nitrogen rate, so use current fertilizer and corn prices rather than relying on an earlier calculation.

  • Count every N source. Credit residual soil nitrate, irrigation water, manure and previous legumes before purchasing additional fertilizer.

  • Time N to crop demand. Split applications and moving more N into the growing season can reduce loss risk and provide flexibility as weather and crop conditions change.

  • Use in-season information. Fertigation, crop sensing, imagery and variable-rate technology can help target N where and when it is most likely to pay.

  • Test before going all in. On-farm comparisons can show whether a new N management strategy reduces fertilizer use while maintaining yield and improving profitability.


Fertilizer prices remain elevated as Nebraska producers plan for another crop season. Although prices continue to fluctuate, seven of the eight major fertilizers tracked nationally by DTN in mid-September 2026 were more expensive than a year earlier. Anhydrous ammonia averaged about $945 per ton (0.58 $/lb N), up 21.6% than the September 2025 average of $777 per ton. Urea averaged $659 per ton (0.72 $/lb N), up 6.5% from $619 per ton a year earlier. UAN32 decreased 4.8%, with a price per ton of $458 (0.72 $/lb N). 

Bar chart comparing fertilizer prices of 2025 and 2026 by type: Anhydrous ammonia, Urea, and UAN32.
Figure 1. Average retail fertilizer prices for anhydrous ammonia, urea and UAN32 in September 2025 and September 2026.

With nitrogen (N) costs rising, the goal should not simply be to reduce N rates across every acre. Applying too little N where the crop needs it can reduce yield and profitability. Instead, high fertilizer prices increase the value of accurately determining how much N is needed, where it is needed and when it should be applied.

Nebraska producers have several tools available to make these decisions more precisely, ranging from the UNL Nitrogen Tool to sensor-based and variable-rate approaches that can improve profitability while protecting water quality.

Revisit the Economic Optimum N Rate

The first step is to revisit the N rate rather than automatically using last year's rate.

University of Nebraska–Lincoln N recommendations are based on the economic optimum nitrogen rate, or EONR — the rate expected to maximize economic return rather than maximum yield. As fertilizer N becomes more expensive relative to corn, the economically optimum rate generally decreases.

The UNL Nitrogen Tool allows producers to enter field-specific information, including expected yield, soil organic matter, residual soil nitrate, irrigation management, fertilizer cost and expected corn price. It also provides credits for N supplied by previous legumes, manure and irrigation water. 

For more information about UNL nitrogen recommendations, refer to Extension Circular EC117, “Nutrient Management Suggestions for Corn.”

With fertilizer markets changing, producers should update the calculation using current fertilizer and expected corn prices rather than relying on the recommendation calculated earlier in the year. Using a realistic yield goal is also important to avoid unnecessary N applications.

Count All Available Nitrogen Sources

High fertilizer prices make existing sources of N increasingly valuable. All N credits should be accounted for when calculating N rates.

Residual nitrate in the soil, nitrate supplied through irrigation water, manure and previous legume crops can all contribute to meeting the crop's N requirement. Accounting for these sources before purchasing additional fertilizer can reduce unnecessary N costs.

Deep soil nitrate sampling is particularly useful where substantial residual N may remain because of drought, hail, reduced yields, manure applications or high previous-year fertilizer rates. UNL recommendations allow these credits to be incorporated directly into the N recommendation. See “Soil Sampling for Better Fertilization Decisions” for more information on proper soil sampling techniques. 

For irrigated fields, nitrate in irrigation water can also represent a meaningful N input. Failing to account for these sources can result in purchasing and applying fertilizer N that the crop does not need.

Apply Most of Your N When the Crop Can Use It

Another opportunity is to reconsider when N is applied. Avoid fall N applications and, where practical, avoid applying the full N rate preplant or at planting.

Corn N uptake increases rapidly after V8. Applying most of the season’s N months before peak crop uptake can increase the risk of N loss because weather between application and crop uptake can strongly affect fertilizer N availability.

Split applications of nitrogen provide greater flexibility. A portion of the N can be applied before or near planting, with the remainder sidedressed or fertigated during the growing season, with most of the N applied near the peak of N uptake, such as V8–V12 in corn.

This strategy is particularly important for sandy soils, which have greater risk of nitrate leaching. The UNL Nitrogen Tool recommends applying at least 60% of fertilizer N during the growing season on sandy soils. See “In-Season Nitrogen Management for Irrigated Corn” for more information.

Holding part of the N until the crop is growing also gives producers an opportunity to adjust later applications based on crop condition, weather and yield potential. More information is available later in the season, allowing for better-informed N decisions and improving the likelihood that fertilizer is applied where it provides the greatest agronomic and economic return.

Use In-Season Information to Guide Nitrogen Applications

Nebraska's extensive center-pivot irrigation and growing use of precision agriculture technologies create opportunities to adjust N applications during the growing season rather than making all N decisions before planting.

Fertigation allows relatively small amounts of N to be applied as crop demand develops. Producers can apply a base rate and retain part of the N budget for later applications, providing flexibility to respond to weather, yield potential and crop conditions.

Crop canopy sensors, satellite imagery and drones can further improve in-season decisions by identifying areas where N may be limiting. Sensor-based approaches developed through Nebraska research use crop reflectance and sufficiency indices to estimate sidedress or fertigation N needs during periods of rapid corn N uptake. Nebraska On-Farm Research conducted from 2021–23 across 24 sites reported average savings of 56 lb N/acre, with yields nearly identical to grower practices and partial profits increasing by about $24/acre.

Precision technologies can also address within-field variation in economically optimum N rates caused by differences in soil properties, landscape position, drainage, yield potential and N-loss risk. Yield maps, soil maps, elevation data, historical imagery and in-season sensing can help identify where variable-rate N may be beneficial.

The goal is not simply to reduce fertilizer, but to apply N where and when it is most likely to provide agronomic and economic benefits. Combining sensing, fertigation and variable-rate technology creates a responsive monitor-and-adjust approach guided by crop and field conditions.

Test New N Technologies Before Adopting Them Across the Farm

Producers do not need to adopt a new technology across every acre at once.

Replicated strips, rate blocks or side-by-side comparisons can be used to compare a new recommendation system with the farm's standard practice. Yield monitor data can then be used to determine whether the technology reduced N use, maintained yield and improved profitability.

Nebraska on-farm research has evaluated sensor-based N management, variable N rates, timing strategies, inhibitors and other decision-support technologies under commercial farming conditions.

This type of testing is particularly valuable when fertilizer prices are high because relatively small improvements in N use efficiency can translate into meaningful savings across many acres.

Summary

High nitrogen prices increase the cost of both overapplication and underapplication. Applying unnecessary N wastes fertilizer dollars and increases the potential for N loss. Cutting rates too far, however, can sacrifice yield and reduce profit.

A better approach is to improve the precision of the decision. Use current fertilizer and corn prices to determine a realistic economic N rate. Credit the nitrogen available from residual soil N, irrigation water, manure and previous legumes. Consider splitting applications and moving more N into the growing season to better match crop uptake. Finally, where appropriate, use fertigation, crop sensors, imagery and variable-rate technology to adjust N according to actual field conditions.

When nitrogen is expensive, the goal is not simply to apply fewer pounds. It is to make every pound of N work harder.

Explore our full collection of CropWatch articles.

Explore Articles