MCGA, NCGA push back against fertilizer tariffs
As fertilizer prices have continued rising, the Minnesota Corn Growers Association (MCGA) and the National Corn Growers Association (NCGA) have been pushing back against tariffs that will further increase them.
Last week, MCGA and NCGA amplified a new Texas A&M University economic analysis showing that a 10% tariff on urea ammonium nitrate (UAN) could increase prices by over $100 per ton. That would translate into an additional $12.78-per-acre cost for farmers. MCGA and 20 other state corn grower associations financially supported the study.
Meanwhile, this past fall, NCGA and four other ag groups submitted an amicus brief urging the U.S. Court of International Trade to rescind tariffs on imported phosphate fertilizers from Morocco and Russia. The tariffs were implemented last March after a petition from the Mosaic Company, which has a near monopoly over the U.S. phosphate fertilizer market. They have resulted in critical sources of imported phosphate being shut out of the U.S., increasing costs for corn farmers.
“Mosaic’s posture to date has been a masterpiece of irresponsible corporate social responsibility,” NCGA wrote in a December letter signed by 23 state corn grower association presidents, including MCGA’s Bryan Biegler.
MCGA supported NCGA in submitting the amicus brief and will continue to closely monitor the case, which could be decided this year.
MCGA and NCGA also have been encouraging CF Industries to drop a petition seeking tariffs on UAN imports from Russia and Trinidad and Tobago. The tariffs, which have been recommended by the U.S. Commerce Department, would effectively raise the price of nitrogen for farmers. The Texas A&M study provides a strong argument why CF Industries need to drop their tariff petition and not further exacerbate rising fertilizer prices.
Additionally, in November, NCGA expressed concern to the Treasury Department that sanctions on potash were resulting in fertilizer shortages. The department has agreed to provide a reprieve through April 2022 on sanctions on potash fertilizers imported to the U.S. from Belarus.
Still, Biegler said tariffs could further raise prices for farmers at a time when they’re already struggling to procure enough fertilizer.
“It’s disappointing that U.S. fertilizer manufacturers would act now to consolidate their market share instead of supporting family farmers,” he said. “We urge the companies to reconsider their petitions and for the International Trade Commission to deny the tariffs.”
NCGA President Chris Edgington said in a statement that it’s deeply disappointing that the U.S. Commerce Department and CF Industries have been pressing for more tariffs.
“Farmers shouldn’t have to pay for disputes between American fertilizer companies and foreign producers,” he said. “Mosaic and CF Industries can easily resolve these issues and provide immediate relief to farmers by dropping their petitions.”
NCGA has reported that the financial impact of tariffs are beginning to dim planting forecasts for 2022. Fertilizer costs between 2021 and 2022 are projected to lower net incomes by 34% in Illinois, according to estimates from economists at the University of Illinois. Farmers say the forecast in Illinois is illustrative of what’s happening across the country.
MCGA is encouraging Minnesota corn farmers to share with CF Industries and Mosaic via social media how rising fertilizer prices are affecting them. Be sure to tag @CFIndustries and @MosaicCompany on Facebook and Twitter.
