The Federal Trade Commission has officially launched an industrywide investigation into rising fertilizer prices. FTC Chair Andrew Ferguson made the announcement during a May 28 meeting with farmers in Grayson County, Texas.
“These continued price increases are not something our nation — much less our farmers — can continue to ignore,” Ferguson said to thunderous applause.
The chairman later confirmed the formal investigation has actually been ongoing “for a while.”
According to USDA data, fertilizer prices have increased more than any other farm input cost since 2020. Ferguson said high prices alone do not necessarily indicate illegal activity. Still, rapid industry consolidation has left only a few companies controlling the majority of U.S. fertilizer sales. Therefore, he said the possibility of anticompetitive practices cannot be ruled out.
Ferguson pointed to remarks that Deputy Secretary of Agriculture Stephen Vaden recently told the Texas Farm Bureau. Vaden noted that, when only a few competitors are in the market, it creates a dynamic where farmers can’t be sure the price they pay for a commodity is the actual market price.
“As chairman, I take seriously my mandate to block anticompetitive mergers that threaten our most critical industries,” Ferugson added.
Farmers voice frustration
During his Texas appearance, Ferguson got an earful from farmers fed up with rising fertilizer prices. Not coincidentally, the event hosted by multiple state corn and soybean grower associations was billed as “Fed Up: Fertilizer Cartel Profits on Farmers’ Backs and Your Grocery Bill.” About 105 farmers from 18 states showed up to express their frustration and hear what Ferguson had to say.
Iowa farmer Mark Mueller said that when he began farming 31 years ago, he could choose from roughly 20 fertilizer suppliers. Today, the market is far more concentrated. Mosaic controls about 80% of the U.S. phosphorus market, while Nutrien and Mosaic together account for nearly 90% of potash sales. As for nitrogen, just three companies — CF Industries, Nutrien and Koch — supply about 70% of the U.S. market.
According to Mueller, industry consolidation has driven prices to the point where many farmers must decide if they can purchase fertilizer at all. This, he said, is not sustainable.
“It’s well past the time to stop ignoring the role of the fertilizer monopolies that dominate critical input markets right now,” he said.
His on-stage testimony was originally intended for the U.S. Senate. At the behest of Sen. Chuck Grassley of Iowa, Mueller flew to Washington intending to testify on fertilizer prices. At the last minute, he was told representatives from The Fertilizer Institute informed senators they would not appear in person if Mueller was also there. Instead, he was only allowed to submit written remarks.
FTC targeting large companies
Ferguson said the FTC has two additional ongoing antitrust investigations impacting agriculture:
Equipment repairs. The FTC and multiple states are challenging alleged monopolistic practices by John Deere for farm equipment repair. This, Ferguson said, has unduly restricted farmers’ rights to repair their own equipment or enlist the help of independent repair shops.
“In other words, we believe that John Deere made our nation’s farmers more dependent on them, to make necessary repairs to their own machinery, compelling them to spend more of their labor on expanding the profits of John Deere and less on themselves and their families,” Ferguson said.
Pesticide prices. The FTC is also investigating allegations that Syngenta and Corteva have driven up pesticide prices by paying distributors not to buy products from competitors. If true, Ferguson said this form of monopolistic behavior hurts not only farmers but also all Americans who pay higher prices at the grocery store.
As for the fertilizer manufacturers, Ferguson warned that before any potential case could be brought to court, the FTC would need ample evidence to ensure it would prevail. The consequences of losing a case could potentially make the situation for farmers even worse.
“That’s why we need your help, because if we’re going to fix this problem, we have to really understand it, and we can’t fix it unless we have the evidence that we need to win a case,” Ferguson told the farmers. He added that the FTC would do everything in its power to protect farmers from potential retaliation they might face for speaking out.
Most in the audience reacted positively to Ferguson’s call to action. Texas farmer Chad Wetzel, who hosted the event at his farm, said he was mostly satisfied with what he heard from the chairman.
“I think it’s a good first step,” he said. “The battle’s just beginning, so to say.”