Fertilizer prices remain a major concern for farmers, and finding a solution remains a top priority for Ohio Corn & Wheat. That’s why we’re putting the focus on the farm, hearing directly from farmers about the impact of years of high fertilizer prices on their operations, and taking a closer look at what needs to happen to even the playing field for American farmers.
“There used to be predictability in the fertilizer markets,” commented Tadd Nicholson, executive director of Ohio Corn & Wheat. “There were supply and demand principles that made sense. And today, you can’t say that.”
Fertilizer prices spiked during the pandemic, but while many other costs eventually came back down, fertilizer stayed high.
For farmers trying to pencil out a crop, that raised a bigger question.
“My concern started in February 2023. I checked with two other terminals on the Ohio River. All three of them had run out of MAP fertilizer the same week. The company that manufactures the phosphate controls the inventory in all three of those locations. So they were basically controlling the price and controlling the supply.”
That experience led Clinton County, Ohio farmer John Settlemyre to start asking more questions. Through conversations with growers across the country, he learned that the problem was not isolated to Ohio.
“I’ve met growers from all across the country, 23 states, and everybody has a regional issue with their fertilizer prices — restricted supply, higher prices. They run out of product in the middle of the season. It’s a common story from Texas to Iowa to Colorado to Georgia to Ohio.”
At the center of the concern is market concentration. Farmers and farm organizations say there are only a handful of major players controlling the key nutrients farmers rely on, such as nitrogen, phosphate, and potash.
“It’s the same product that we bought ten years ago. The mines haven’t changed,” added Settlemyre.
Phosphate has become a major focus because farmers are pushing to remove the countervailing duty on phosphate fertilizer from Morocco, which they say has helped drive up prices in the U.S.
President Trump’s recent executive order provides some temporary relief, but it does not permanently end the case. Fertilizer company Mosaic is asking the federal government to keep its 2021 duty in place on phosphate from Morocco and Russia, while also seeking an increase on the Moroccan phosphate duty from about 16.6% to just over 20%.
Ohio Corn & Wheat’s Tadd Nicholson and farmers across the country argue that these actions reduce competition and add cost to an input they cannot do without.
“A countervailing duty is a fancy way to say tax or tariff. The result of a countervailing duty or a tariff or a tax is it’s going to increase the price of whatever is being shipped into the United States.”
That is especially frustrating for farmers because they sell into one of the world’s most transparent markets, where prices are visible to everyone. But when it comes to fertilizer, farmers like John Settlemyre say it is much harder to understand what is driving prices, even as growers in other parts of the world, such as Brazil, often pay less for the same product.
“Farmers in the U.S. are paying significantly more for fertilizer than growers in other parts of the world, and that puts us at a real disadvantage. We’re competing in a global market, but we’re not buying our inputs in a global market. That gap makes it harder to stay competitive and raises serious questions about fairness.”
That price disparity adds up, forcing farmers like Scott Haerr in Clark County to make difficult on-farm decisions.
“We can only rob Peter to pay Paul for so long. We have the ability to maybe forego a little bit for a little while, but we also know agronomically we can’t continue to mine our soils without affecting our crop production.”
That added pressure is coming at an already difficult time. Commodity prices remain low. Margins are tight, and many growers say they are burning through equity just to keep operating.
“We’re in a situation now where it’s hard to pencil a profit in grain production,” offered Haerr. “There’s fear in the farming industry. Everybody’s operating at a loss today.”
That is why Ohio Corn & Wheat and other corn organizations are pushing the issue in Washington and across the country, not waiting for change but demanding it. Calling for greater transparency, stronger competition, and access to the global fertilizer market, while urging federal leaders to take action and deliver reform.
“We just want fair treatment. And we want to have access to the same raw materials at the same price,” shared Settlemyre.
Earlier this summer, progress was made at an event in Texas that brought together more than 100 farmers from 18 states, including Ohio. Federal Trade Commission Chairman Andrew Ferguson listened to concerns raised by growers, setting the stage for a major announcement.
“I assure you, the FTC is prioritizing protecting you and your livelihood. If we find that anyone has broken the antitrust laws and victimized our farmers through anti-competitive behavior, I will not hesitate to act,” Ferguson emphasized.
The FTC is also asking farmers, retailers and others connected to the fertilizer market to share what they know. That includes retailers who often work directly with fertilizer manufacturers who may have important insight into how fertilizers price sold and supplied.
“The retailers don’t want to say anything because they don’t want to jeopardize their contracts. They’re well aware of this. They’ve tried to talk to to many of them, and they understand there is a healthy fear by by retailers. And so what they did was create an anonymous tip line,” added Nicholson. “The Chairman looked at this audience of 100 farmers and said, we’re going to protect you.”
The investigation is only the first step. What they say they need is a fertilizer market that works the way it should with more competition, more transparency and better access to global supplies.
“Short term, repeal of CVDs. Long term, take a more critical look at the supply chain and how the manufacturers’ relationships with the retailers work, and try to restore some sense of competition and free market,” that is what success looks like to concerned farmers like John Settlemyre.
But to others like Scott Haerr, this issue bigger than fertilizer. It’s about keeping American agriculture competitive and making sure the United States can continue to grow and protect its own food supply.
“Food supply is national security, you know, a hungry population, a dangerous population. So as a society, you know, we have got to keep our food production in business.”
The FTC is now asking individuals and businesses with relevant information to come forward, including those who may be concerned about speaking up publicly.
If you or someone you know has information that could help with this investigation, please do not hesitate to share it. You can contact the FTC directly at fertilizercomplaints@ftc.gov, and your information will be handled confidentially.
