Q&A: Fertilizer Costs Jolt Farm Economy

Q&A: Fertilizer Costs Jolt Farm Economy

With U.S. Sen. Chuck Grassley

Q: What can be done to lower fertilizer costs?

A: As a farmer-lawmaker, I'm proud to serve as an outspoken advocate for family farmers. When there's a natural disaster or headwinds in the farm economy, I raise the volume for Rural America at the policymaking tables. At my annual 99 county meetings, I'm hearing from family farmers across Iowa about financial hardship with high input costs and low commodity prices. The cost of fuel and fertilizer is hammering thin operating margins. Farmers aren't able to dictate the selling price for their commodities. Many sure find it curious when commodity prices increase, so do their input prices. And yet, when commodity prices are low, input prices are still going up.

As chairman of the Senate Judiciary Committee, I led a hearing last fall to look under the hood of the fertilizer market and identify legislative and regulatory policies to restore competition and bring down costs. Recently, the Senate Agriculture Committee heard from industry leaders, farmers and ag tech entrepreneurs to discuss proposals that would increase domestic fertilizer production to help buffer supply disruptions linked to geopolitical affairs out of farmers' control. I brought up the need for transparency tools to boost retail price discovery to help drive down costs. Access to reliable, affordable fertilizer is key to farmers' livelihoods as well as America's food and national security. If farmers are unable to afford phosphate fertilizer to enrich their soil, crop production and yields will go down. That's bad for our domestic food and fuel supply.

A witness representing the Kentucky Farm Bureau Federation said the financial squeeze farmers are facing is "limiting their ability to manage risk or invest in future production" and making it harder for young and beginning farmers to get started. The high cost of fertilizer is opening a can of worms in farm country. Unfortunately, not the kind that enriches soil nutrients.

I'm glad President Trump uses his bully pulpit to bring attention to fertilizer prices. At the Senate Agriculture Committee hearing, I repeated my calls to remove the Biden Phosphate Duties on phosphate fertilizer imports from Morocco. The duties have contributed to inflated fertilizer expenses, particularly for corn growers. A Texas A&M study showed farmers paid nearly $7 billion in additional costs between the 2021-2025 growing seasons because of countervailing duties. That's unsustainable, particularly when commodity prices are low, fuel prices are climbing and interest expenses are eating into farmers' bottom lines.

Q: How would your legislative proposals help drive down fertilizer prices?

A: I've joined forces with farm state senators to introduce a handful of bipartisan bills that I'm working to get to the president's desk.

1. Fertilizer Research Act would require the Department of Agriculture to conduct a study on competition trends and concentration in the fertilizer market and subsequent impact on price. This information would help inform policymaking to get a better handle on what's driving price fluctuations or distortions in the market.
2. Fertilizer Transparency Act would provide producers with timely and accurate information on prices for nitrogen, phosphorus and potassium. It would require the USDA to collect and publish data on fertilizer prices from manufacturers on a weekly basis. Just like crops need sunlight to grow, bringing daylight to fertilizer pricing will help farmers make informed decisions on input costs.
3. Lowering Input Costs for American Farmers Act would eliminate tariffs and countervailing duties on phosphate fertilizer imports from Morocco.

In addition to my efforts to lower fertilizer costs, I'm also leading the charge in the U.S. Senate to pass year-round nationwide E15 sales. As an original co-sponsor of the Nationwide Consumer and Fuel Retailer Choice Act, I won't stop fighting to get this common sense legislation across the finish line. President Trump, Vice President Vance and USDA Secretary Rollins have each endorsed this bill during their recent travels to Iowa. I applaud our Iowa congressional delegation who fought successfully to get landmark E15 legislation passed in the House of Representatives. Getting year-round E15 nationwide signed into the law of the land will boost profitability for farmers and lower prices at the pump for Americans.

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