CENTRE COUNTY, Pa (WJAC) — Farmers, like the rest of us, are dealing with higher prices for many items — ranging from fuel to insurance.

But it’s the global economy that’s impacting one of agriculture’s most basic necessities and driving up the cost.

For many farmers, especially crop farmers, fertilizer is a necessity. In recent months, the cost of fertilizer has climbed, partially due to the ongoing war in the Middle East.

“Fertilizer continues to be a challenge for us, especially in the northeast. Ninety percent of our nitrogen fertilizer that we use in 15 states in the northeast are actually shipped over here from Russia. But with our relationship with them being what it is, and you get shipping and transportation issues, it just continues to present more challenges for us on a daily basis.”

Dan Kniffen, a Centre County farmer, estimates that close to 40 percent of his annual farming budget is spent on fertilizer.

“We are at the mercy of whatever the market is at the time. Last spring, when we were buying fertilizer and nitrogen to put out for crops, it was up to a thousand dollars a ton. If you go back several years, it was under 500 dollars a ton.”

This week, at Ag Progress Days, there was more talk of a fertilizer production facility that would be based in Clearfield County, using natural gas from nearby Clinton County.

The project is in the early planning stages, with some questions raised about possible environmental impacts.

Kniffen, meanwhile, fears that with both fuel and fertilizer prices rising this year for farmers, it is going to have a sizeable impact on profit margins.