WASHINGTON – Sens. Chuck Grassley (R-Iowa), Tammy Baldwin (D-Wis.) and Joni Ernst (R-Iowa) are leading a bipartisan push to shed light on market factors driving the cost of fertilizer, a major expense for farmers. The Midwest senators’ Fertilizer Research Act would require the Department of Agriculture (USDA) to conduct a study on competition and trends in the fertilizer market to determine their subsequent impacts on price.
“Farmers’ bottom lines thin as the price of fertilizer rises. With fertilizer being one of the ag industry’s highest input costs, it’s problematic farmers have such a limited window into market fluctuations. Our bill will provide farmers in Iowa and across the Heartland with needed transparency and certainty as they navigate production costs,” Grassley said.
“Wisconsin’s farmers work long hours year-round to provide food for our families, but in recent years, they have faced tough economic headwinds, including the high cost of fertilizer. This hurts their bottom lines, our rural communities, and American consumers, and we need to do more to address rising input costs for our agricultural industry. I’m proud to work with Senator Grassley to improve the fertilizer market so our farmers can afford to continue feeding America,” Baldwin said.
“Bidenomics has been tough on all Iowans, especially our farmers and rural communities. On top of rising prices for everyday goods, Iowa’s ag community is facing all-time high fertilizer costs,” Ernst said. “Senator Chuck Grassley and I are teaming up to force Biden’s USDA to create more transparency around why fertilizer costs are so high and how we can work to bring them down.”
The Fertilizer Research Act is endorsed by the Iowa Corn Growers Association, Iowa Soybean Association, American Soybean Association and Farm Action Fund.
“We appreciate that Senator Grassley has honored our request for a study to review the competition and transparency of the fertilizer industry. In recent years, the continued increase in input costs, especially fertilizer, has put pressure on Iowa's corn farmers and our wallets. That's why an assessment will provide clarity to better understand if there is adequate information on the pricing practices, tariffs and exertion of market power by companies within the industry,” said Jolene Riessen, President of the Iowa Corn Growers Association.
Within one year of the bill’s passage, the Secretary of Agriculture, in consultation with the Economic Research Service, would be required to issue a report on USDA’s website regarding the U.S. fertilizer industry. Specifically, the report should include:
Bill text can be found HERE.
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