recommends several strategies to ….
recommends several strategies to optimize dollars spent on fertilizer.
With a range of available fertilizer products, including granular and liquid, it’s important to know the fertilizer cost per pound of nutrient. For example, the nitrogen cost per pound of urea could be compared to the cost per pound of nitrogen for liquid nitrogen, which is generally either 28 percent or 32 percent nitrogen. As of April 2, liquid nitrogen costs approximately 10 percent more than granular nitrogen on a per pound basis, according to the USDA Pacific Northwest Production Cost Report. (Similar calculations can be made for adjustments with phosphorus fertilizers.)
“Producers may be asking how much to cut back on nitrogen fertilizer rates based on increased costs,” Jones said. “MSU has an online small grains nitrogen rate calculator that uses fertilizer costs, grain prices and protein discounts from the USDA to estimate the optimal available soil nitrogen to maximize profit for spring wheat, winter wheat and barley.”
He provided an estimate example using April 2, 2026, values, where a 50 bushel per acre spring wheat crop provides maximum profit when provided 1.8 pounds of available nitrogen per bushel, where available nitrogen is fertilizer plus soil nitrogen to 2 feet. That compares to the optimum of 2.3 pounds of available nitrogen per bushel using early February prices. The difference between applying 2.3 pounds or 1.8 pounds per bushel equates to 50,000 pounds of nitrogen for a farm producing 100,000 bushels of wheat. Producers can use the calculator to calculate optimum nitrogen rates for specific fields, crops and fertilizer costs. Jones pointed out that minimizing nutrient losses is also important to optimize fertilizer dollars. Volatilization, or loss to the air, of nitrogen fertilizers is likely the largest loss of nitrogen in Montana. Previous MSU research found that, on average, 18% of urea escapes to the air. The loss was much lower when urea was applied shortly before a half-inch of rain fell or when the urea was treated with a urease inhibitor. Liquid nitrogen tends to volatilize somewhat less than granular nitrogen. Placing ammonium- based fertilizers, including urea, at least 2 inches below the soil surface can mostly stop volatilization, according to Jones.
Another potential loss of nitrogen fertilizer is through downward movement below the rootzone, called nitrate leaching. Jones and colleagues have found that replacing summer fallow with pea can greatly reduce nitrate leaching.
Planting legumes, like peas and alfalfa, can also save on nitrogen fertilizer costs because bacteria on legume roots convert nitrogen gas into plant-available nitrogen; these crops don’t need nitrogen fertilizer. Rates of nitrogen can also generally be reduced for crops grown after legumes, Jones added.
“Soil testing in spring, using realistic yield goals when calculating nitrogen requirements and applying conservative nitrogen amounts near the time of seeding, followed by more in-season nitrogen only if spring rains increase yield potential, should also save on nitrogen costs,” said Jones.
With high nitrogen fertilizer prices, Jones suggested this may be an excellent year for producers to adopt variable-rate nitrogen management. Variable-rate nitrogen allows growers to apply less nitrogen in field areas that do not need as much, either due to lower yield potential or higher residual soil nitrate levels.
Ricardo Pinto, precision agriculture specialist at MSU’s Northern Agricultural Research Center, will be working with producers and collaborators over the next several years to better understand how variable-rate nitrogen can improve nitrogen use efficiency and support producers’ bottom lines. Producers interested in learning more or collaborating on variable-rate nitrogen projects can contact Pinto directly.
Phosphorus fertilizer costs are also much higher. Phosphorus fertilizer is most efficiently used by crops when it is placed in the rootzone, ideally with the seed, Jones said. “For soils with phosphorus levels well above the optimum of 16 parts per million, this might be a year to apply little or no phosphorus to save on costs.”
Individuals can contact a crop adviser or local MSU Extension agent for help making fertilizer decisions.
Access MSU’s small grains nitrogen rate calculator here and choose your crop in the menu.


