Bipartisan Bill Addresses Fertilizer Costs
Increases in diesel and gasoline prices are already impacting farmers as they plant crops in Sumner County. Kansas State University economist Gregg Ibendahl estimates that the average Kansas grain farm will spend an additional $10,000 on fuel this season.
Supply chain disruptions are also driving up the cost of fertilizer locally. The price of anhydrous ammonia has climbed to more than $1,000 per ton, adding another $12,000 in costs for the average grain farm, Ibendahl said.
“For the fertilizer market, conversations last year were mostly about how the price of Phosphorus was out of line compared to the price of grain. This spring those conversations have shifted to Nitrogen being out of line compared to the price of grain,” said Lane Manners, Agronomist at MKC-Wellington.
Recently, Representative Sharice Davids helped introduce the bipartisan Fertilizer Transparency Act, aimed at increasing transparency in fertilizer markets and providing farmers with better information on crop input prices.
“Fertilizer is a global market that has very few suppliers. If this legislation moves forward, it will bring more visibility to this part of the supply chain that has historically operated with limited public data,” said Manners. “It may encourage more conversation between farmers and their agronomy providers, and that is a good thing. Open dialogue around things like pricing, timing, source, placement, pre-pay, and agronomics is a win-win for both sides.”
The legislation seeks to ensure farmers have timely, reliable data to plan ahead and remain competitive.
“Farmers are already dealing with enough uncertainty — from weather to reckless tariffs and global markets — and they shouldn’t be left in the dark about the cost of the fertilizer they rely on,” Davids said. “With rising fertilizer prices driven by global conflict and supply disruptions, it’s more important than ever that producers have clear, up-to-date information.”
As conflict involving Iran disrupts key shipping routes, fertilizer shipments are backing up near the Strait of Hormuz, a critical chokepoint through which a significant portion of the world’s fertilizer supply passes.
The bill would require the U.S. Department of Agriculture (USDA) to establish a mandatory reporting program for fertilizer prices and quantities sold in the United States. The data would be published weekly, giving farmers clearer insight into market conditions.
Currently, the USDA publishes fertilizer data annually on a voluntary basis. The proposed weekly reports would include pricing and sales volumes for nitrogen, phosphorus and potassium, covering both domestic and imported products.
“They already publish information on grain sales weekly, so adding this just makes sense,” said Sumner County farmer Robert White.
Manners added, “From a local standpoint, co-ops that are agronomy retailers work within the market conditions that are set upstream. Because of this, we are open to more transparency. Agriculture works best when markets are competitive and transparent.”
The Fertilizer Transparency Act has been introduced in both the U.S. House and Senate with bipartisan support. The bill is awaiting committee hearings and further action.