USDA Presses Fertilizer Antitrust Case as Farmers Demand Lower Prices

USDA Deputy Secretary Stephen Vaden urged U.S. farmers to keep supplying evidence of alleged anticompetitive practices in the fertilizer industry, which may have caused billions of dollars in harm.

The issue was discussed at a meeting with over 170 producers from 13 states gathered in Iowa on September 11. The USDA, Federal Trade Commission, and farm organizations are increasing scrutiny of fertilizer market concentration due to its impact on farm margins.

Farmers argue that consolidation has weakened competition and contributed to prices that remain difficult for them to absorb. For example, Iowa Corn said fertilizer shareholders generated more than $20 billion in profits over the past five years, while farmers have faced fertilizer costs that at points doubled or tripled from 2020 levels.

Anhydrous ammonia recently averaged $938 per ton, compared with $767 per ton a year earlier, and DAP, MAP, potash, and urea were also above year-ago levels. Vaden emphasized that the administration's objective is not to dictate fertilizer prices but to create enough competition for farmers to receive a fair market price.