Corn farmers in the U.S. are bracing for even higher fertilizer prices as conflict in the Middle East impacts the globally traded commodity, according to leaders with the National Corn Growers Association.
Corn farmers are approaching a fourth year of negative yields, due to low corn prices and high input costs, including fertilizers. The growers association renewed its call on Congress to legalize year-round, nationwide E-15, a higher blend of ethanol fuel, and for the removal of duties on fertilizers from Morocco.
Lesly McNitt, vice president of public policy for National Corn Growers Association, said there is not enough domestically produced fertilizer to meet demand, which means imported fertilizer is vital to farmers.
McNitt, speaking during a press conference Wednesday, said duties on phosphate from Morocco and Russia that were put in place in 2020, have “kept phosphate prices high” and caused “availability issues and lack of competitive options for farmers.”
A study from the Agricultural and Food Policy Center at Texas A&M University found that the countervailing duties increased the cost of phosphorus by about $6.9 billion for the 2021 to 2025 growing seasons.
“Now the conflict in the Middle East has further complicated access to critical fertilizers,” McNitt said, noting the U.S. typically imports about 40% of phosphate products from Saudi Arabia.
“When these fertilizers can’t be transported through the Strait of Hormuz, there are real implications for availability and price, and there is a global market impact,” McNitt said.
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