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NCGA President: Industry consolidation a key factor in rising input costs

The president of the National Corn Growers Association says consolidation in the fertilizer industry could be the largest contributor to higher costs.  

Jed Bower, a farmer from Ohio, says the Middle East conflict has gotten a lot of attention recently, but there’s more to the story. “I think a tremendous part of it is the lack of competition within the marketplace. I’m not going to say that transportation issues through the Strait of Hormuz doesn’t impact price. It does.”

He tells Brownfield input for much of this year’s crop shouldn’t be affected since some growers locked in prices already. “This fertilizer is not coming from the Strait of Hormuz at this point. This fertilizer is in the United States. It’s in warehouses. This is just an opportunity for companies to use a scare tactic to charge more for their product.”   

The Fertilizers Price Index increased more than 25 percent from last month. The index tracks changes in the cost of products over time, including nitrogen, phosphate, and potash. It measures the average price farmers pay for these inputs, providing a snapshot of trends in the market.