Grassley, Baldwin, Ernst Reintroduce Fertilizer Research Act

Grassley, Baldwin, Ernst Reintroduce Fertilizer Research Act

WASHINGTON - Sens. Chuck Grassley (R-Iowa), Tammy Baldwin (D-Wis.) and Joni Ernst (R-Iowa) are reintroducing bipartisan legislation to shine a light on market factors driving the high cost of fertilizer, which is a major expense for farmers. The Fertilizer Research Act would require the Department of Agriculture (USDA) to conduct a study on competition and trends in the fertilizer market and their subsequent impacts on price. Grassley is a lifelong family farmer and a member of the Senate Agriculture Committee.

"Fertilizer is one of the ag industry's biggest inputs, and family farmers across the nation are severely hurting right now due to its high cost. Yet, farmers have a limited window into market fluctuations and how fertilizer prices are determined. That needs to change. Our bipartisan bill will give farmers in Iowa and across the Heartland more transparency and certainty so they can better navigate production costs," Grassley said.

"Wisconsin's farmers are the backbone of our rural communities and right now, they are facing all sorts of headwinds that are eating into their bottom lines and threatening their ability to make ends meet," Baldwin said. "Fertilizer costs are often a huge expense for farmers and that's why I am proud to work with my Republican colleagues to increase transparency and lower their input costs so they can continue to feed America."

"Fertilizer is an essential tool our farmers rely on to maintain healthy soil and improve crop yields," Ernst said. "I'm working hard to drive down fertilizer costs and make life more affordable for both farmers and consumers. By gaining a better understanding of the fertilizer industry, this research will provide the foundational knowledge needed to give farmers much needed clarity and certainty as harvest approaches."

Sen. Raphael Warnock (D-Ga.) is also a cosponsor of the legislation.

The Fertilizer Research Act is endorsed by the National Corn Growers Association, the American Soybean Association, the American Farm Bureau Federation, the National Farmers Union, the Farm Action Fund, the Iowa Farmers Union, the Iowa Farm Bureau, the Iowa Corn Growers Association (ICGA) and the Iowa Soybean Association.

"Corn growers are facing prices for fertilizers and other inputs that are unsustainable," said National Corn Growers Association President and Illinois farmer Kenneth Hartman Jr. "In fact, USDA projects that fertilizer alone will account for 36% of a corn grower's operating cost for 2025. So, we are deeply appreciative of Sens. Grassley and Baldwin for prioritizing this issue and introducing this legislation."

"Farmers are getting squeezed on all sides by high input costs, corporate consolidation, and unfair markets. Fertilizer is a major part of that pressure. Studies like this increase transparency, providing a clearer picture of what's driving price and supply. We thank Senators Grassley and Baldwin for introducing this legislation and recognizing that accountability and competition in farm inputs are essential if family farmers and ranchers are going to have a fair shot in the marketplace," said Rob Larew, President of the National Farmers Union.

"The Iowa Corn Growers Association (ICGA) sincerely appreciates Senator Grassley once again honoring our request for a study to review the competition and transparency within the fertilizer industry," said Mark Mueller, ICGA President and farmer from Waverly, Iowa. "Fertilizer prices have continued to increase, putting pressure on Iowa corn farmers who are already faced with low corn prices and increased input costs, making profit margins slim or even nonexistent. We need to assess the fertilizer industry to better understand pricing practices, tariffs and the exertion of market power by companies within the industry. This request came directly from ICGA, and Senator Grassley's continued commitment to corn growers is evident with reintroduction of the Fertilizer Research Act."

"Fertilizer remains one of the highest and most unpredictable input costs for Iowa farmers, yet we lack the transparency to fully understand what drives those fluctuations. The Fertilizer Research Act is an important step toward greater accountability in the industry and will provide farmers with the clarity needed to better manage fertilizer cost," said Tom Adam, Iowa Soybean Association President and farmer from Harper, Iowa.

"The Fertilizer Research Act empowers farmers with tools they need to produce more bushels for less," said Mitch Eviston, Founder and CEO of Meristem Crop Performance, based in Powell, Ohio. "With the current high fertilizer prices, farmers need clear insights into market dynamics and pricing practices. We're especially encouraged by the bill's focus on emerging technologies like biologicals, which offer farmers additional tools to improve efficiency, take cost out, enhance soil health, and boost yields. This legislation supports agricultural innovation and competition - two key pillars of resilient American farms and a productive U.S. agricultural economy."

Within one year of the bill's passage, the Secretary of Agriculture, in consultation with the Economic Research Service, would be required to issue a report on USDA's website regarding the U.S. fertilizer industry.

Specifically, the report should include:

• A description of impacts on the fertilizer market that influence price;
• Market trends in the past 25 years;
• A description of the imported fertilizer and market impacts;
• Impacts of anti-dumping and countervailing duties;
• A study of fertilizer industry concentration;
• A study of emerging fertilizer technologies; and
• A description of whether current public price reporting is sufficient for market transparency.

Text of the legislation can be found HERE.

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