MCKINNEY, TX – More than 100 farmers representing 18 states gathered here on May 28 for "Fed Up: Fertilizer Cartel Profits off Farmers' Backs and Your Grocery Bill,” a forum with Federal Trade Commission (FTC) Chairman Andrew N. Ferguson focused on fertilizer market challenges and their impact on farm profitability. The event brought together producers, agribusiness leaders, and policymakers to discuss rising input costs, market concentration, and the effects of fertilizer prices on both American farmers and consumers.
During a listening session, farmers and industry leaders shared firsthand accounts of the challenges they are facing on their operations, followed by an open discussion with Chairman Ferguson.
Among the participants was Joe Mencer, a third-generation farmer from Lake Village, Arkansas, who shared concerns about the impact of rising fertilizer costs on rice production and farm profitability. Mencer noted that Arkansas produces nearly half of the nation’s rice but has experienced a significant decline in planted acreage as production costs continue to rise.
“Our cost of production has risen from $972 per acre in 2015 to more than $1,337 per acre this year,” Mencer said, adding that many rice farmers are expected to lose hundreds of dollars per acre despite strong yields. He also raised concerns about the limited number of fertilizer suppliers and the nation’s growing dependence on imported fertilizer, calling for greater domestic production and a more efficient permitting process.
Mencer emphasized the importance of maintaining a strong domestic food supply, arguing that “we need to bring production back to this country – a nation that can’t feed itself cannot protect itself.”
During the event, Ferguson announced that the FTC has launched a “major industry wide investigation” into rising fertilizer prices. “I'm announcing that, on my order, the Commission some time ago commenced a major industry-wide investigation into the precipitous rise of fertilizer prices in this country, which has affected so many of our nation's farmers,” Ferguson said. He added that continued increases in fertilizer costs are placing significant pressure on American farmers and reinforced the Commission’s commitment to investigating conditions within the fertilizer market.
The FTC announcement comes as farm organizations continue to advocate for policies that would improve fertilizer affordability and availability. Earlier this month, USA Rice joined more than 60 national and state agricultural organizations – including all the rice-producing states – in urging the U.S. Department of Commerce to revoke countervailing duties (CVDs) on imported phosphate fertilizer.
In a
letter to Commerce Secretary Howard Lutnick, the groups argued that the tariffs have significantly increased production costs for farmers while benefiting a small number of dominant fertilizer suppliers. The groups cited a Texas A&M University analysis estimating that duties increased input costs by approximately $6.9 billion for producers of rice, corn, soybeans, wheat, sorghum, and cotton between 2021 and 2025. The letter states that removing the duties would increase fertilizer availability, lower input expenses, and support the long-term sustainability of U.S. agriculture.