Bipartisan Bill Seeks USDA Investigation of Fertilizer Industry
A bipartisan bill, called the Fertilizer Research Act of 2023, is set to be introduced by Sens. Chuck Grassley (R-Iowa) and Tammy Baldwin (D-Wis.). This bill calls for USDA to investigate concentration within the fertilizer industry and assess any potential "anticompetitive impacts." The move comes as American farmers express concerns about the availability and cost fluctuations of crop nutrients, particularly following Russia's invasion of Ukraine, which disrupted global supply chains and led to record-high fertilizer prices.
Key points about the bill and the fertilizer industry:
- Scrutiny of concentration: The bill seeks to examine concentration within the fertilizer industry and assess whether it has led to anticompetitive practices.
- Transparency and pricing: It directs the USDA to investigate pricing transparency, imports, emerging technologies, and other relevant issues within the fertilizer industry.
- Support from farming groups: The bill has garnered support from groups representing Iowa corn and soybean farmers.
- Transparency advocated: The Fertilizer Institute, a trade organization for the industry, supports transparency through improved data collection and analysis. They also seek the re-establishment of a fertilizer economist at the USDA to serve as a liaison on crop nutrient matters.
- Global fertilizer production: As of 2021, North America held a 16% share of global fertilizer production, with the majority of usage occurring outside the United States.
- Industry response: Top fertilizer maker Nutrien Ltd. is reviewing the legislation, while other crop nutrient producers, CF Industries Holdings Inc. and The Mosaic Co., have not yet commented.
- Legislative path: Sen. Grassley aims to have this legislation included in next year’s five-year farm bill reauthorization but is open to other avenues for passage.
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