Sixty-five state and national groups, including the National Corn Growers Association, recently sent a letter to Commerce Secretary Howard Lutnick calling on him to end countervailing duties placed on phosphate fertilizers imported from Morocco to ease the pain felt by farmers as fertilizers prices reach new highs.
The announcement comes shortly after Federal Trade Commission Chairman Andrew Ferguson announced a major, industry-wide investigation into the fertilizer industry's pricing practices and concentration.
"These costs land on an already fragile farm economy," the letter said. "Net farm income has fallen roughly 31 percent from its 2022 peak, fertilizer prices are up more than 150 percent since 2020, and Chapter 12 farm bankruptcies have risen to their highest levels in several years."
The letter also noted that farmers are in their fourth straight year of losses, and that countervailing duties only exacerbate their financial outlook and could mean the difference between sustaining family farms for generations to come or seeing legacies come to an end.
The countervailing duties, requested by the U.S.-based Mosaic Company and Simplot, have been in effect since March 2021. The letter noted that the duties not only hurt farmers, but they also do not accomplish their intended goals.
"The duties do not protect a vulnerable domestic industry from unfair competition," the letter said. "Rather, they further prop up two companies who already dominate the domestic market and will continue to dominate that market absent CVD protection."
An independent analysis by the Agricultural and Food Policy Center at Texas A&M University has estimated that the countervailing duties on Moroccan phosphate raised input costs for farmers of corn, soybeans, wheat, rice, sorghum and cotton by roughly $6.9 billion over the 2021 through 2025 growing seasons. At its full initial rate of 19.97 percent, the duty drove up the U.S. price of diammonium phosphate by an estimated 28.6 percent.
EDITOR’S TAKE:
There is no doubt that fertilizer is a major operating cost when it comes to crop production. And while fertilizer often emanates from various countries, choosing the one that can be most beneficial seems to be a strategic step in the right direction. This would be a relatively easy fix and put money back into the farm economy at a time when it is desperately needed. In fact, the most recent Purdue University Ag Barometer survey found that rising input costs continue to be the number one concern of farmers.
Once again, a reminder that AgPack® is a great answer to anyone purchasing or leasing a truck or SUV and who has concerns about operating costs on their farm or ranch. It offers thousands of dollars in exclusive rebates and discounts, including $2,000 worth of liquid fertilizer from our friends at AgroLiquid! It’s a program specifically designed to help farmers/ranchers obtain a better deal on products they can use in their operation. Plus, it’s a benefit that costs them not a single penny!
