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Farmers involved over fertilizer duopoly
Two corn farmers within the Northern Plains say market consolidation has led to a scarcity of competitors within the U.S. fertilizer business, inflicting a worth enhance for farmers.
“Our highest price enter is basically managed by two firms,” says Trent Kubik, president, South Dakota Corn Growers Affiliation.
The South Dakota farmer tells Brownfield he’d wish to see the Trump administration comply with by on its dedication to research the fertilizer duopoly and enhance the state of affairs.
“Seed, as an illustration, is our second main enter. I’ve a number of selections the place I can purchase my seed from and that’s an excellent factor. Once I go to purchase fertilizer, my fertilizer provider has two selections and people two selections are very aligned on their costs.”
Kubik says he’s optimistic the USDA and Division of Justice’s evaluation of ag enter competitors, an government order on market focus, and a doable DOJ antitrust investigation can present extra perception. Nevertheless, few particulars are recognized at the moment.
Minnesota Corn Growers Affiliation President Wes Beck says on the finish of the day, farmers need extra enforcement and transparency.
“Many people have gotten used to the seasonal developments of fertilizer. Those that purchase early most likely get the most effective worth and justifiably so. However the latest worth will increase have been greater than that and have put farmers at a price squeeze.”
Beck says the ratio of the worth of fertilizer in comparison with the worth of corn is the widest its ever been, with phosphorus doubling in worth and nitrogen up 15 to twenty p.c from final yr.
Kubik and Beck have been two of 14 state corn grower affiliation leaders who despatched a letter to the USDA and U.S. Lawyer Common this week, asking for an replace on the investigations.
Hear the interview with Beck.
Hear the interview with Kubik.
