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FTC launches investigation into possible anti-competitive practices in U.S. fertilizer industry

The Federal Trade Commission is launching a formal investigation into possible anti-competitive behavior in the U.S. fertilizer industry.

Bradley Schad, CEO of the Missouri Corn Growers Association, says unfair practices have caused farmers to pay a higher price for fertilizer.

“What happened whenever we went into Iran? Immediately, overnight, the prices jumped,” he says. “There was no warehouse change whatsoever at that point in time across the Midwest, but yet fertilizer prices jumped. We’ve got other farmers that they couldn’t even get a price on the fertilizer that was actually already in the barn at the retail location.”

Schad says the investigation could provide enough information to bring a case against the U.S. fertilizer industry and help farmers.

“This isn’t a a short term deal. This is going to take many years to get through and do the investigative process, but we’re excited and happy the FTC is finally doing this.”

He says there’s too much consolidation in the U.S. fertilizer industry, and farmers need more transparency.  

The USDA is beginning a search for a full-time input economist focused on monitoring farm input costs. Schad says it’s a step in the right direction.

“At least that will help in bringing awareness to the anti competitive practices and bringing forward the price because sometimes we can’t even get price of state to state or things like that.”

However, he says more can be done.

Farmer leaders and ag organizations from more than 18 states, including Missouri, Iowa, the Dakotas, Minnesota, Texas, Indiana, Ohio and Michigan, attended a townhall in Texas on Thursday, asking for stronger oversight and accountability in the U.S. fertilizer industry.