The tight supply coupled with rising energy prices caused the rise in fertilizer costs last month. A combination of modern farming techniques, and increased use of biofertilizers is driving growth in the fertilizer sector. We believe that recent price drops could make it a good time to invest in fundamentally sound fertilizer stock CVR Partners (NYSE) or Intrepid (IPI). Keep reading. Rising energy costs and scarcity, a weak market structure and poor trade policies, have all contributed to fertilizer prices reaching near-record heights. DTN’s report shows that nitrogen was the most popular category of fertilizer and its average price per ton reached $1,308 last month.

The World Bank also reported that average fertilizer prices would rise 25% in 2021 compared to last year. The growth of the fertilizer sector is being driven by advanced farming methods, increased trade and the increasing use of biofertilizers. Through 2026, the global fertilizer market will grow at a rate of 4%.

Therefore, we think fundamentally strong fertilizer stocks CVR Partners, LP (UAN), and Intrepid Potash, Inc. (NYSE:) could be ideal picks now to capitalize on the industry’s solid growth prospects. This stock’s recent decline in price is a great entry point to secure future gains.

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