Farmers Feel Squeeze from Tariffs, War, and Concentrated Food System
Ohio farmers are facing unprecedented pressure from multiple directions, threatening their livelihoods and the rural communities they support. The squeeze comes from several sources: tariffs on potash imports from Canada, which account for nearly 90% of US supplies; global demand for these fertilizers has pushed prices up by 21% compared to last year. This is on top of war-related disruptions in the Middle East that have doubled urea prices and sent crude oil above $110 a barrel.
The result is higher costs for farmers, including increased expenses for nutrients, equipment, and repairs. However, this does not translate into better prices at the farm gate, as grocery prices are up roughly 25% since 2020, but the extra dollars mostly accrue to processing, branding, logistics, and retail owners.
This is largely due to concentration in the agrifood industry: Bayer and Corteva Agriscience control about 72% of corn acres and 66% of soybean acres; adding AgReliant and Syngenta, these four companies account for more than 80% of corn and soybean seed sales. An Ohio farmer is effectively a price-taker twice over, paying concentrated suppliers and selling to concentrated buyers.