Farmer Groups Push Feds to Speed Up Fertilizer Probe Amid Industry Concentration Concerns

Seventeen state grower organizations are pressing federal investigators to expedite their examination of the fertilizer industry, citing farmer frustration with persistently high costs. A letter sent to Senate Judiciary Committee leaders Chuck Grassley and Richard Durbin on July 13 urged them to push the Justice Department to complete its investigation.

The groups pointed out that the Justice Department's antitrust office in Chicago has opened criminal and civil investigations into possible price collusion, targeting major players including Nutrien, Mosaic, CF Industries, Koch, and Yara International. Additionally, Federal Trade Commission Chairman Andrew Ferguson launched a separate investigation in late May, issuing subpoenas in June.

The farmer concerns center on industry concentration. Data from the Agriculture Department reveals that the number of nitrogen fertilizer producers plummeted from 46 to 13 between 1984 and 2008. Today, four companies control approximately 75% of the domestic nitrogen market, while two companies dominate nearly 100% of the potash market.

The impact on farmers is significant, with a spring survey by the American Farm Bureau Federation finding that roughly 70% of farmers couldn't afford all the fertilizer they needed this season. Kaitlin Taylor, public policy director at the Nebraska Corn Growers Association, stated, 'Producers deserve more transparency about what recent mergers have done to the market.'