A “major industry-wide investigation” into U.S. fertilizer price spikes is in progress, Federal Trade Commission Chairman Andrew Ferguson told corn farmers gathered in Texas.
The FTC chief spoke on Thursday at an event organized by farm leaders, "Fed Up: Fertilizer Cartel Profits off Farmers' Backs and Your Grocery Bill,” the Texas Corn Producers said in a statement.
“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,” Ferguson said, according to the corn group.
Prices of fertilizer have risen more than 150% since 2020, far outpacing inflation, while net farm income fell 31% from its peak in 2022, according to the Texas Corn Producers. The group's meeting drew farmers from 18 states.
“USDA data has shown the single largest increase in input costs of farmers across the United States since 2020 has come from fertilizer,” Ferguson said. “These continued price increases are not something our nation, much less our farmers, can continue to ignore.”
Republican Sen. Chuck Grassley on Thursday said he was grateful for the FTC investigation, and that high fertilizer prices were a top complaint from farmers during his latest annual tour of Iowa's 99 counties. Grassley has repeatedly pushed for passage of his bill with co-sponsor Tammy Baldwin, D-Wis., that would direct the Agriculture Department to study fertilizer markets and industry concentration.
The heightened concern follows roughly five years of erratic price swings, fluctuations that fertilizer company executives have said are the result of a globally connected market influenced by everything from natural disasters to wars.
Many crop growers view it differently.
“A fertilizer cartel has squeezed American agriculture to the breaking point, while driving up grocery costs for every family in this country,” Texas Corn Producers Chairman Aaron Martinka said. “Farmers are fed up, and we are not going away.”
It’s easy to be “in the know” about what’s happening in Washington, D.C. Sign up for a FREE month of Agri-Pulse news! Simply click here
The FTC confirmed to Agri-Pulse that Ferguson announced an investigation into the rise in fertilizer prices on Thursday.
Representatives of major North American producers of crop nutrients didn’t immediately respond to requests for comment.
Escalating production costs of essential farming tools, particularly fertilizer, have led to three straight years of downturns for grain and oilseed farming, with a slump also widely forecast for 2026. Earlier this month, fertilizer market concentration and the need to ramp up domestic production of crop nutrients took center stage at a Senate Agriculture Committee hearing, where Senate Majority Leader John Thune, R-S.D., asked about the U.S. industry's competitive landscape.
Chapter 12 bankruptcy filings among family farmers, fishers and ranchers in 2025 were up 46% to 315 from the prior year, according to Farmer Mac. Grain and oilseed producers in the Midwest and Southeast both saw increases of about 70% from 2024.
“We appreciate the opportunity to share the on-the-ground reality farmers are experiencing,” Lance Lillibridge, an Iowa farmer and former president of the state’s corn association, said. “We're grateful that Chairman Ferguson and the FTC came to Texas, listened to our farmers, and took action. Now we need that investigation to follow the evidence wherever it leads."
The Agriculture and Justice departments announced late last year a joint query into high prices for fertilizer and other farm inputs.
In March, Sen. Josh Hawley, R-Mo., wrote to DOJ and five of the biggest fertilizer producers to seek assurance that companies aren’t engaged in price gouging or market manipulation in the wake of the conflict in Iran.
Bloomberg News reported March 4 that DOJ is investigating the U.S. fertilizer market for possible price fixing. Two class-action lawsuits have been filed against major manufacturers. And Agriculture Department Deputy Secretary Stephen Vaden said he has met with FTC and Justice Department officials as part of the pricing probe.
The Trump administration earlier this month announced the revival of a Biden-era program to expand fertilizer production in an attempt to address persistently high input costs.
For more news, go to Agri-Pulse.com.
.webp?t=1762183428)
