Farmers facing record fertilizer prices this last spring got some good news on the trade front this week that should help ease prices. The International Trade Commission ruled against imposing steep tariffs on uran ammonium nitrate fertilizers imported from Russia and Trinidad and Tobago. They voted that the U.S. domestic producers are not injured by these imports.
The finding will end duties of up to 123% on Russia and 112% tariffs on imports from Trinidad and Tabago. These two markets account for nearly 80% of typical U.S. imports.
The National Corn Growers Association came out strongly against the tariffs. President Chris Edgington tells us this was a win for farmers across the country. “First no more tariffs on that were potentially going to go on imported nitrogen fertilizer, primarily UAN, which is good. Prices are already high, supply is short, people are worried about what’s going to happen this fall.”
Edgington says the ruling was rare because it went against a recommendation for tariffs from the Commerce Department and gives him hope about the ITC ruling regarding tariffs on phosphate fertilizer from Morocco that is still pending.
Edgington, “That in itself is trend setting, positive and then we’ve got another one out there you know. We got phosphorus is still out in the courts and so this makes me pretty optimistic that we’ve got an opportunity to get a difference in that one as well and that would really be positive.”
CF Industries filed a petition with ITC in late 2021, requesting that the commission place tariffs on UAN and has expressed disappointment and says the action will perpetuate an unlevel playing field for the domestic industry. The ITC’s decision takes effect immediately.
Fertilizer expert Josh Linville with Stone X Financial, tells us this means that normal import flows should return. He says it should also cause the price per actual pound of Nitrogen differential between urea and UAN to narrow once again, which will lower UAN prices.
