The congress has reintroduced the Fertilizer Research Act, a bipartisan bill that would mandate the USDA to study competition and market factors affecting fertilizer prices. This legislation seeks to increase transparency for farmers, who are facing high input costs that are cutting into their profits.
In a renewed effort to address the financial strain on American farmers, Senators Chuck Grassley, Tammy Baldwin, and Joni Ernst have reintroduced the Fertilizer Research Act. This bipartisan bill is designed to compel the Department of Agriculture (USDA) to conduct a comprehensive study on the U.S. fertilizer market, aiming to uncover the drivers behind the soaring costs that are a major expense for agricultural producers.
The bill specifies that within one year of its passage, the Secretary of Agriculture, in consultation with the Economic Research Service, would be required to issue a detailed report. The report must include a description of the market factors that influence price, a review of market trends over the past 25 years, an analysis of imported fertilizer and the impacts of anti-dumping and countervailing duties, a study of industry concentration, and an assessment of emerging technologies and current public price reporting.
The legislation comes as farmers across the country, particularly in the corn and soybean-heavy states of Iowa and Wisconsin, grapple with production costs that threaten their profitability. Fertilizer is a critical input, and according to the National Corn Growers Association, it is projected to account for a significant 36% of a corn grower's operating costs in 2025. The bill's proponents argue that a lack of transparency in the fertilizer market leaves farmers vulnerable to price fluctuations and makes it difficult to plan for the planting and harvest seasons.
Senator Grassley, a lifelong family farmer and a member of the Senate Agriculture Committee, emphasized the urgency of the issue. "Family farmers across the nation are severely hurting right now due to its high cost," Grassley stated. "Our bipartisan bill will give farmers in Iowa and across the Heartland more transparency and certainty so they can better navigate production costs."
Similarly, Senator Baldwin highlighted the bill as a way to support the "backbone of our rural communities." She stressed that increasing transparency and lowering input costs are essential for farmers to "continue to feed America." Senator Ernst also underscored the importance of the bill in providing "much needed clarity and certainty as harvest approaches."
The legislation has garnered broad support from a coalition of influential agricultural organizations. The National Corn Growers Association, the American Soybean Association, the American Farm Bureau Federation, and the National Farmers Union are among the many groups that have endorsed the bill.
