As Congress considers new fertilizer policies amid ongoing global instability, Farm Action is warning that current proposals fail to address the concentrated market forces that turn supply disruptions into severe price spikes for U.S. farmers—and rising costs for taxpayers and consumers.
Today, Farm Action sent a letter to congressional leadership urging lawmakers to pair near-term fertilizer solutions with structural reforms that address the root causes of repeated price shocks. While recent proposals to improve fertilizer supply and transparency reflect growing attention to the issue, Farm Action’s letter warns these measures alone will not prevent future crises.
A highly concentrated fertilizer market allows global disruptions—whether driven by geopolitical conflicts, trade constraints, or logistical challenges—to translate into rapid, outsized, and sustained price increases. Four firms control over 80% of nitrogen production, and just two control over 90% of phosphate and potash capacity. At the same time, limited transparency around pricing, production, and inventory makes it hard for farmers and policymakers to assess market conditions.
Farmers have faced recurring fertilizer price shocks in recent years, but lack the ability to pass rising costs on in global markets. As a result, many are forced to reduce application rates or acreage, squeezing already thin margins and increasing reliance on federal assistance.
“Without structural reforms, this dynamic risks becoming cyclical, with taxpayer-funded relief flowing through farmers and ultimately into fertilizer and other highly concentrated input sectors,” the letter states.
In the letter, Farm Action calls on Congress to pair immediate steps with structural reforms, including:
- A federal price-gouging law for agricultural inputs
- Use of the Defense Production Act to safeguard supply
- Limits on further consolidation
- Stronger market transparency
- Investment in independent and regional production
- Farm policies that reduce reliance on volatile inputs
Farm Action has repeatedly warned that consolidation in the fertilizer industry poses ongoing risks to farmers. In a recent letter to President Trump and federal antitrust regulators, Farm Action warned that highly concentrated fertilizer markets leave producers vulnerable to future pricing shocks. The organization also previously urged the Department of Justice to investigate fertilizer pricing during the 2021–2022 spike.
Source: Farm Action
Comments