The Trump administration appears ready to take on one of the world’s largest fertilizer manufacturers.
On April 13, during a meeting with the North American Agricultural Journalists association in Washington, USDA Deputy Secretary Stephen Vaden called out fertilizer giant Mosaic for its April 8 decision to idle two plants in Brazil. Together, those facilities produce about 1 million metric tons of phosphate.
“What is one of the world’s largest producers of that commodity doing taking a million metric tons away from the world market?” Vaden asked. “What possible motivation other than further constricting supply, sowing uncertainty and already sufficient profit margins could they possibly have?”
Vaden’s remarks were the latest in a series of salvos the Trump administration has fired against large fertilizers companies. The Department of Justice is already pursuing an anti-trust case against major fertilizer producers, though few details of the case have been made public. This after DOJ and USDA signed a September memorandum of understanding to scrutinize competitive conditions in the agricultural marketplace.
On April 11, President Donald Trump posted on social media that he was watching fertilizer prices “closely” during “our fight for freedom in Iran.”
“The United States will not accept PRICE GOUGING from the fertilizer market,” he added in his Truth Social post. “American Farmers, we have your back.”
Why call out Mosaic?
Mosaic and Nutrien control nearly 90% of the North American phosphate and potash markets. In the wake of the Iran war, those companies are now coming under more scrutiny for what critics say are unfair advantages they have in the market.
In 2021, Mosaic filed a case calling for countervailing duties against fertilizer from Moracco and Russia. The company alleged the two nations unfairly subsidized fertilizer. As a result, the U.S. now imposes duties from 16% to 47% on fertilizer imports from Moracco and Russia.
According to a January report from the Texas A&M Agriculture and Food Policy Center, countervailing duties on Moroccan imports alone cost U.S. farmers an estimated $6.9 billion between the 2021 and 2025 growing seasons. Those duties are set to expire in 2027 unless the U.S. International Trade Commission and the Department of Commerce vote to extend them.
Nutrien officials recently announced they would support efforts to lift the countervailing duties. Vaden said this came shortly after he met with company officials.
Thus far, Mosaic and fertilizer company J.R. Simplot remain committed to extending the duties. Vaden said he planned to meet with Mosaic officials later this week.
A war of words
Two weeks ago, nearly 60 agriculture groups — including the National Corn Growers Association, the American Soybean Association, the National Association of Wheat Growers and the National Cotton Council — sent a letter to Amy Karpel, chair of the U.S. International Trade Commission, calling for an end to the countervailing duties. The groups contend the duties are constraining supply and contributing to higher prices.
“Respectfully, these companies — one of which’s CEOs receives $9.8 million in annual compensation — do not need import protection to keep them healthy,” the farm groups said. “Farmers, on the other hand, do need help.”
According to NCGA, Mosaic and Simplot officials did not respond to a separate letter from the farmer groups asking them to end countervailing duties.
On April 11, Mosaic posted a 111-word statement on social media stating that global fertilizer prices are shaped by a “wide range of well-documented market factors.” The company went on to say it was those forces, “not individual producers,” that drive the pricing of phosphate and potash fertilizer projects.
“Are we all fools?” Vaden said when discussing how Mosaic officials have responded to recent criticisms. “Or are they trying to just sell a story, to try to continue with a larger share of profits than they would otherwise have if there were a true market with multiple competitors for this necessary commodity?”
Hours after Vaden’s remarks, USDA Secretary Brooke Rollins weighed in on social media, saying she was “disappointed” with Mosaic, retweeting the company’s April 11 post.
“Any sleight of hand will not be tolerated,” she added, tagging Vaden, Trump, Commerce Secretary Howard Lutnick, Acting Attorney General Todd Blanche, DOJ, Treasury Secretary Scott Bessent and the office of the U.S. Trade Representative in her post.