NCGA Acts, Members Face Input Shortages and High Prices Caused by U.S. Tariffs on Fertilizer
KCGA is working closely with NCGA on several fertilizer issues including phosphate, UAN and potash. Here is an update on the latest actions Corn Growers are taking on potash and phosphate.
Corn Growers Lead Letter on Potash
In August, the Biden Administration enacted broad sanctions against the nation of Belarus, which is one of the largest producers of agricultural potash in the world. These sanctions were part of a larger package of sanctions, but unlike our allies in the UK and EU, which also sanctioned potash company Belaruskali as part of a coordinated response, the US sanctions inappropriately cover imports of potash used as agricultural fertilizer, putting U.S. farmers at a significant competitive disadvantage. The US should exempt agricultural potash from the list of products subject to sanction. Gavilon submitted a request to the U.S. Dept. of Treasury for temporary suspension until spring 2022. In action Thursday, NCGA took the lead on a letter supporting Gavilon’s request.
NCGA Joins Ag groups in Letter to Overturn Phosphate Tariffs
The National Corn Growers Association joined four other agricultural groups last Friday in encouraging the U.S. Court of International Trade to overturn an earlier decision by the International Trade Commission, which imposed tariffs on imported phosphate fertilizers from Morocco. The U.S. Department of Commerce recommended in February 2021 that the ITC implement tariffs over 19% on imported fertilizers from Morocco after the Mosaic Company, which manufactures fertilizers used in the U.S. and abroad, filed a petition with the department seeking the levies. The ITC voted in March to impose the tariffs while adding similar levies on Russian imports. As a result, critical sources of imported supply have been shut out of the U.S. market, and the costs for fertilizers have increased for farmers. In the meantime, Mosaic, whose control of the phosphate market has grown from 74% to over 80%, is gaining a near-monopoly over the phosphate fertilizer supply in the U.S. In fact, Mosaic’s share price has quadrupled since March.