FTC Fertilizer Investigation Welcomed By Farm Action

Today, the Federal Trade Commission (FTC) announced it has launched an investigation into the fertilizer industry’s market concentration and pricing practices in the U.S. In March, Farm Action urged the Trump administration to address the highly concentrated fertilizer market to prevent another pricing crisis from hitting farmers during planting season.

In response to today’s announcement, Farm Action issued the following statement, which can be attributed to Farm Action President Angela Huffman:

“Farm Action welcomes the FTC’s investigation into fertilizer market concentration and pricing practices. Farmers have been warning for years that a handful of dominant fertilizer corporations can use global supply shocks as cover to raise prices far beyond their own costs. Today’s announcement is an important step toward accountability. Now, the FTC must move quickly and transparently to determine whether dominant fertilizer companies are abusing their market power, and to make sure farmers are not forced to pay the price for corporate concentration and geopolitical instability.”

As Farm Action’s Agriculture Consolidation Data Hub shows, in North America, four companies control about 84% of nitrogen production, while just two dominate roughly 86% of phosphate and 89% of potash. Farm Action has long warned that this level of concentration leaves farmers vulnerable to severe price spikes during global disruptions.