USDA to Study Fertilizer Prices Under New Senate Bill

By Blake Jackson

U.S. Senators Tammy Baldwin (D-WI), Chuck Grassley (R-IA), and Joni Ernst (R-IA) have introduced the bipartisan Fertilizer Research Act, aimed at addressing one of the biggest expenses facing farmers: the rising cost of fertilizer.

The legislation would direct the U.S. Department of Agriculture (USDA) to study fertilizer market competition, trends, and factors that influence pricing.

“Wisconsin’s farmers are the backbone of our rural communities and right now, they are facing all sorts of headwinds that are eating into their bottom lines and threatening their ability to make ends meet,” said Senator Baldwin.

“Fertilizer costs are often a huge expense for farmers and that’s why I am proud to work with my Republican colleagues to increase transparency and lower their input costs so they can continue to feed America.”

“Fertilizer is one of the ag industry’s biggest inputs, and family farmers across the nation are severely hurting right now due to its high cost. Yet, farmers have a limited window into market fluctuations and how fertilizer prices are determined. That needs to change," Said Senator Grassley.

"Our bipartisan bill will give farmers in Iowa and across the Heartland more transparency and certainty so they can better navigate production costs.”

“Fertilizer is an essential tool our farmers rely on to maintain healthy soil and improve crop yields,” added Senator Ernst. “I’m working hard to drive down fertilizer costs and make life more affordable for both farmers and consumers. By gaining a better understanding of the fertilizer industry, this research will provide the foundational knowledge needed to give farmers much needed clarity and certainty as harvest approaches.”

The legislation requires USDA, within one year of enactment, to publish a detailed report on the U.S. fertilizer industry. The report would examine pricing influences, 25-year market trends, import impacts, trade duties, industry consolidation, new fertilizer technologies, and whether current public price reporting is adequate.

The proposal has earned support from major farm groups, including the Wisconsin Corn Growers Association, National Corn Growers Association, American Soybean Association, American Farm Bureau Federation, National Farmers Union, and Farm Action Fund.

Photo Credit: gettyimages-fertnig