USDA Seeks Farmer Input on Fertilizer Industry 'Cartel' Practices
The US Department of Agriculture (USDA) is seeking input from farmers on anti-competitive practices in the fertilizer industry. Deputy Secretary Stephen Vaden met with corn and wheat growers associations in Iowa to discuss consolidation and pricing issues. The event, titled 'Fed Up: Fertilizer Cartel Profits on Farmers' Backs,' was designed to gather evidence of unfair pricing or anti-competitive practices.
Vaden stated that the individual stories from farmers would help in the US Federal Trade Commission's investigation into the industry. He emphasized that a large number of such stories would be difficult for companies to explain away, and encouraged farmers to share their experiences on the SaveFamilyFarms.US website, which allows producers to submit evidence anonymously.
Linda Thrasher, co-founder of Greenfield Nitrogen, a farmer-formed company trying to build an anhydrous ammonia manufacturing facility in Iowa, spoke about her experience. She claimed that retailers and cooperatives they approached refused to make deals with them due to fear of being 'blackballed' by the dominant companies.
The event highlighted the concerns of farmers regarding high fertilizer prices, which have led to a 220% year-over-year increase in farm bankruptcies in Iowa. The USDA is working to spur domestic fertilizer production through initiatives such as the FIELDS program, a $500 million program to fund projects expanding, upgrading or constructing new fertilizer production facilities.