Grassley Presses for Answers on High Fertilizer Prices, Calls for Increased Transparency to Drive Down Costs

Grassley Presses for Answers on High Fertilizer Prices, Calls for Increased Transparency to Drive Down Costs

WASHINGTON - Sen. Chuck Grassley (R-Iowa), a lifelong family farmer and a member of the Senate Agriculture Committee, pressed for answers on the high cost of fertilizer at a committee hearing today.

Grassley repeated his call for the Trump administration to remove the Biden Phosphate Duties on phosphate fertilizer imports from Morocco that are driving up costs for family farmers. Grassley spoke about the need to increase transparency on the market factors driving the high cost of fertilizer, including through his Fertilizer Research Act. In his response to Grassley's question, South Dakota Corn Growers President Trent Kubik endorsed Grassley's Fertilizer Research Act.

Grassley is working hard to bring down input costs for Iowans. He is a cosponsor of Sen. Roger Marshall's (R-Kan.) package of legislation aimed at bringing down fertilizer costs. In March, Grassley joined Majority Leader John Thune (R-S.D.) to introduce the Fertilizer Transparency Act to help producers access timely and accurate information on prices for fertilizer and fertilizer products. Last fall, he held a Senate Judiciary Committee hearing focused on competition in the fertilizer industry.

Video and a transcript of Grassley's questions are below.

VIDEO

On the need to remove the Biden Phosphate Duties:

In 2021, countervailing duties were first applied to Moroccan phosphate. A study published at Texas A&M in January found that farmers paid nearly $7 billion in additional costs between the '21-'25 growing seasons because of countervailing duties.

One company, Mosaic, has 80% of the market in the United States, yet they feel like they need protection [through] 18% tariffs on Moroccan phosphate coming into this country. Trump has tried to help with dollars from the U.S. Treasury. But, what I hear, even last week in 12 different counties in Iowa that I toured, farmers want to get their money from the marketplace, not from the U.S. Treasury. So, I think this administration ought to get rid of that 18% tariff on Moroccan phosphate, lowering production costs. [It] would be as much help as increasing [payments] farmers are getting from the federal treasury.

On the need for more transparency in the face of increased fertilizer market consolidation:

For many years now, farmers have felt that, when commodity prices increase, input prices are bound to increase with them. Since 2020, even as the price of corn has decreased, fertilizer prices have remained elevated. We know the talking points of the fertilizer industry. The cause would be the Ukraine [war], Chinese export controls on fertilizer, all contributing to the prices farmers are facing, and increased prices those are. However, farmers have also been seeing increased consolidation of the fertilizer industry. So, farmers want to know exactly why they're paying the price that they have for fertilizers, and I think we need more transparency on that. So, for you, Mr. Kubik, as a consumer of fertilizer, how much insight do you have into the price of the fertilizer you use?

…

My second question I think you just addressed. But, [would] more transparency and knowledge and data on fertilizer prices would be very beneficial to you?

On the need for additional reporting by USDA:

Is there a reason that the fertilizer industry may not want a study to be published by the U.S. Department of Agriculture?

On providing farmers with more data:

Mr. Rosenbusch, does The Fertilizer Institute support a report that provides insights to farmers on why they have paid certain prices for fertilizers, including factors such as market concentration?

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