U.S. agriculture officials are seeking information from farmers about fertilizer pricing and market practices as federal scrutiny of competition in the industry intensifies, according to Agrolatam.
The outreach comes amid mounting concern among growers over the cost of fertilizer, an essential input for crops including corn and wheat. According to Agrolatam’s reporting, the U.S. Department of Agriculture is gathering farmers’ experiences as regulators examine whether consolidation and potentially anti-competitive conduct have contributed to elevated prices.
USDA Deputy Secretary Stephen Vaden has urged producers to document their experiences with fertilizer suppliers, arguing that a large collection of similar accounts could help federal officials assess whether pricing patterns reflect broader industry practices, according to Agrolatam.
The effort adds to a wider federal examination of agricultural input markets. The Justice Department and USDA previously established a formal partnership aimed at strengthening competition in markets including fertilizer, seed, fuel, feed and farm equipment. The Justice Department has said such coordination is intended to help farmers and ranchers obtain essential inputs in competitive markets.
Related: Missouri Opens Fertilizer Antitrust Probe as Price-Fixing Scrutiny Widens
Federal regulators have also been examining fertilizer companies more directly. The Justice Department has investigated whether major producers colluded to increase prices, with companies including Nutrien Ltd., Mosaic Co., CF Industries Holdings Inc., Koch Inc. and Yara International ASA coming under scrutiny, according to reporting cited in coverage of the investigation. The inquiry has examined pricing practices for possible civil and criminal antitrust violations.
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The Federal Trade Commission has separately opened an industrywide antitrust investigation into rising fertilizer costs, according to published reports. The inquiry has increased pressure on an industry that says fertilizer prices are shaped by global supply and demand, geopolitical disruptions, weather, trade flows and government policy.
The Fertilizer Institute, an industry trade group, has rejected the suggestion that a lack of competition explains the price increases. In a statement cited in recent coverage, the organization said fertilizer producers compete in a global market and that numerous external factors influence prices.
Market concentration has nevertheless been a longstanding concern for USDA. A department summary of comments submitted during an earlier fertilizer-market review said commenters identified four companies — CF Industries, Nutrien, Koch and Yara-USA — as accounting for about 75% of the nitrogen fertilizer market. The same summary described Nutrien and Mosaic as the two major potash suppliers and said Mosaic controlled about 60% of phosphate production. Those figures reflected submissions to USDA rather than independent findings of illegal conduct.
The economic stakes are significant for farmers. USDA data cited by Justice Department officials showed fertilizer expenses had climbed 37% since 2020, alongside increases in other major farm costs. Justice Department antitrust officials have said the causes of those increases require further investigation.
The Trump administration has also pursued measures intended to increase fertilizer supplies and reduce costs. In June, President Donald Trump temporarily suspended countervailing duties on certain phosphate fertilizer imports. USDA estimated the move could lower phosphate fertilizer prices by roughly 22% and save U.S. farmers about $1.82 billion annually as additional supplies reach the domestic market.
USDA is simultaneously backing additional domestic fertilizer capacity, part of an effort to reduce reliance on concentrated suppliers and increase competition. According to Agrolatam, officials have presented new supply and greater market entry as important tools for putting downward pressure on farmers’ input costs.
The department’s latest outreach suggests farmer testimony could now become another component of the government’s competition push. At a September gathering in Iowa, growers described limited choices among suppliers and said fertilizer expenses were adding to already difficult farm economics, according to Agrolatam.
Source: Agrolatam
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