In its Semi-annual Fertiliser Outlook the agribusiness banking specialist said most fertiliser prices are gradually returning to their historical averages, after skyrocketing over the past two years.
The report says global fertiliser prices began trending higher in 2021 due to supply chain constraints brought on by the pandemic, before hitting record-high levels after Russia invaded Ukraine.
By that time, Rabobank analyst Vitor Pistoia said reasonable prices for agricultural commodities were the only reason fertiliser didn't become as unaffordable as it was in 2009 during the global economic crisis.
"Prices continue to remain above average for a number of agricultural commodities, due to tighter stocks," Vitor Pistoia said.
"The combination of still-positive commodity prices and lower fertiliser prices is helping fertiliser affordability for farmers.
"Although globally, ‘consumption' may take two or three years to recover, and the speed of recovery will depend on how long the current positive cycle lasts."
Pistoia said fertiliser demand has grown in Australia over recent years, despite the price hikes, due to good seasonal conditions and a surge in grain and oilseed production.
"Although the conditions for the 2023 crop seasons are a bit different, they do not signal a reversal in the trend of historically-high cropping area and a significant application rate," Mr Pistoia said.
"The drop in farm input prices is greater than that of commodity prices, and this is slowly improving farmers' buying power."