(Washington D.C.) U.S. Secretary of Agriculture Brooke Rollins appearing at a press conference late Tuesday afternoon stated for years American farmers, and ranchers have faced high fertilizer prices. Rollins says consolidation has led to higher prices, and fewer options in the marketplace. According to USDA data, in the 1980’s there were nearly 50 nitrogen fertilizer producers. Today there are four companies controlling 75 percent of the domestic nitrogen fertilizer market. And at Least two firms control all of the Potash fertilizer market.
Rollins says over the past several months the USDA has been pouring over data that illustrates farmers varying demand at different points during the spring planting season.
Rollins stated this administration is not passing the buck or leaving problems for others to deal with.
Brooke Rollins said there is no question ensuring our farmers can attain the fertilizer they need at a price they can afford is a long-term problem, but one that demands immediate solutions for both farmers, and consumers. The government announced in the short term they will work to ease shipping restrictions to speed deliveries, increase fertilizer imports, and launch a Justice Department investigation into major fertilizer companies over concerns about market concentration.
According to Rollins, the administration is pursuing a long-term strategy to expand production capacity through a $900 million fertilizer investment program. In Ames, Iowa, a fertilizer facility is nearing completion and is expected to come online this summer, boosting annual output by 36,000 tons. She also noted that the Commerce Department’s investment accelerator—supported by more than $1 billion in infrastructure funding—could provide additional assistance, drawing from a historically high $750 billion pool tied to U.S. trade-related initiatives.
Alongside these efforts, the Department of Energy has issued a $1.5 billion loan for the Indiana Ammonia project. Rollins added that the EPA, Department of Commerce, and the Army Corps of Engineers are working to streamline permitting processes for air, water, chemicals, environmental safety, and transportation. For example, a goal is to accelerate approval for CF Industries’ new world-scale ammonia facility at the Bluepoint complex in Louisiana, which is expected to become the largest ammonia plant in the world, with an annual production capacity of 1 million metric tons. Ag Secretary Rollins stated the administration is committed to supporting future federal legislative efforts to alleviate high costs of fertilizer.
Rollins believes that in one to two years, the United States could expand domestic nitrogen production by 30-percent, domestic phosphate production by over 200 percent, and domestic potash production by over 100 percent outlined by these projects.
Click the bar below to listen to Rollins portion of the Tuesday’s press Conference.
