Farmers push FTC to investigate rising fertilizer costs and market power
The Kansas Corn Growers Association has welcomed an investigation by the Federal Trade Commission into fertilizer pricing and market concentration in the United States. The announcement was made by FTC Chairman Andrew Ferguson at a farmer gathering in Texas.
Fertilizer costs have increased sharply since 2020, becoming the fastest-growing input expense for farmers. According to USDA data, these rising costs have placed heavy pressure on farm incomes, which have declined significantly in recent years. Farmers say this situation cannot continue and requires immediate attention.
“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, including everyone in this room, including the issuance of compulsory process,” said Chairman Ferguson.
“USDA data has shown the single largest increase in input costs of farmers across the United States since 2020 has come from fertilizer… These continued price increases are not something our nation, much less our farmers, can continue to ignore,” said Ferguson.
Kansas Corn leaders have actively highlighted the issue before lawmakers. KCGA Secretary Tanner McNinch participated in a Senate Agriculture Committee hearing, while farmer leader Grauerholz spoke directly at the recent event to present growers’ concerns.
Farm leaders described the situation as a major input crisis. They emphasized that high fertilizer prices are affecting farm operations, especially during peak planting seasons. Calls were made for better transparency, fair trade practices, and improved competition within the fertilizer market.
During the event, attention was also drawn to major fertilizer companies and their role in setting costs. Farmers noted that prices have risen more than 150 percent since 2020, much higher than inflation, while net farm income has declined sharply.
Producers from multiple states shared their experiences, explaining how rising costs and limited market competition are impacting farm sustainability. Many urged the FTC to take strong action to protect farmers and ensure a fair marketplace.
"Chairman Ferguson said what every farmer in that room already knew — this nation cannot continue to ignore what's happening in the fertilizer market,” said Texas Corn Producers Chairman Aaron Martinka.
“A fertilizer cartel has squeezed American agriculture to the breaking point, while driving up grocery costs for every family in this country. Farmers are fed up, and we are not going away. The FTC's investigation is a critical step toward restoring the fair, competitive marketplace that farm families and American consumers deserve,” said Martinka.
Farm leaders welcomed the investigation as an important step toward addressing long-standing concerns. They also encouraged farmers and retailers to share relevant information with the FTC to support the inquiry.
Recent data shows increasing financial stress in agriculture, with farm bankruptcies rising across several states. Leaders believe addressing fertilizer pricing issues is essential for the survival of family farms and long-term agricultural stability.
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