The world’s leading potash manufacturer is projecting stronger demand for their fertilizer product next year, even as agricultural producers struggle with tight profit margins and reduced spending on farm inputs.
During their quarterly earnings discussion on February 19th, Canadian-based Nutrien outlined expectations for growing potash sales in 2026, pointing to several market factors including substantial harvest yields in 2025, limited fall fertilizer applications across the United States, and potash’s competitive pricing advantage over alternative nutrients.
According to Nutrien’s Chief Executive Ken Seitz, North American potash purchases will be “driven by the need to replenish soil nutrients following a record crop and a shortened fall application window.” Seitz also noted that favorable weather conditions in Australia should boost farmer demand for potash in that region.
However, the company continues facing challenges in Brazil, where their retail agricultural product sales remain sluggish due to poor farm profitability, leading producers to postpone fertilizer purchases as long as feasible, Seitz explained.
Agricultural producers worldwide are experiencing financial pressure as grain prices remain depressed while fertilizer costs haven’t decreased proportionally, though they’ve dropped significantly from post-pandemic peaks. American farmers are anticipated to plant fewer corn acres this season, with expensive nitrogen fertilizer potentially influencing this decision.
Market analysts predict farmers may cut back on phosphate fertilizer applications this spring due to economic constraints, similar to reductions seen in late 2025. This strategy works because phosphate nutrients persist in soil beyond the application year, allowing producers to sometimes delay purchases. Such delays aren’t typically viable with nitrogen-based fertilizers.
Seitz doesn’t anticipate similar reductions in potash usage since it represents the most affordable fertilizer option and the substantial 2025 crops depleted significant soil nutrients.
When facing poor profitability or financial losses, farmers will attempt to maximize crop production, which requires sufficient fertilization, he explained.
“Their focus is very much on yield,” Seitz stated.
