By Andi Anderson
The U.S. Department of Agriculture is raising strong concerns about competition in the fertilizer market and its impact on farmers.
During a recent webinar hosted by the National Ag Law Center USDA Deputy Agriculture Secretary Stephen Vaden highlighted fertilizer pricing and supply as a major issue for the administration.
Vaden pointed to market concentration as a key concern especially in phosphate fertilizer and potash production. He explained that limited competition may be affecting supply levels and increasing prices paid by farmers. According to Vaden two major companies dominate much of the market.
“The duopoly that is Mosaic and Nutrien and their successful efforts over the past several years to constrain fertilizer supply in this country and drive up the costs that farmers are paying,” Vaden states. “This administration is going to do everything it can to ensure that farmers have the fertilizer they need at a price that they can pay and a price it allows food to be purchased at the price the consumer can pay.”
Vaden shared data showing that market concentration remains high. He stated that Nutrien and Mosaic accounted for more than 90 percent of phosphate fertilizer and potash production in North America during 2024.
This level of control raises concerns about fair competition and the long term health of the agricultural input market.
High fertilizer prices place added pressure on farmers who are already facing tight margins. Input costs play a major role in farm profitability and can affect planting decisions production levels and overall food prices.
USDA officials say improving competition is important not only for farmers but also for consumers who depend on affordable food.
Vaden also discussed potential changes in the market. He noted that new competition is expected to enter the potash sector. BHP plans to invest $13 billion in a new potash mine in Saskatchewan Canada.
The mine is expected to be operational by halfway through 2027 and could supply potash to the U.S. market. This development may help increase supply and ease pricing pressure over time.
Farm organizations such as IL Corn say they will continue to monitor fertilizer market conditions closely. They plan to emphasize the voice of farmers as input prices remain a serious concern.
USDA officials have signaled that ensuring fair competition and affordable fertilizer remains a priority for supporting farmers and strengthening the agricultural economy.
Photo Credit: gettyimages-fotokostic
Categories: Illinois, Government & Policy