FTC Chairman Ferguson Confirms Investigation into Fertilizer Industry

Federal Trade Commission Launches Investigation into Rising Fertilizer Costs

The Federal Trade Commission (FTC) has launched an antitrust investigation into the rising costs of fertilizer in the US, FTC Chairman Andrew Ferguson announced at an event in Texas on Thursday. The investigation, which was commenced several months ago, aims to address the significant increase in fertilizer prices that has affected many of the nation's farmers.

According to data from the United States Department of Agriculture (USDA), the single largest increase in input costs for farmers across the United States since 2020 has come from fertilizer. The surge in fertilizer prices earlier this year was triggered by attacks on Iran, which disrupted global trade flows for critical crop nutrients. This disruption benefited some fertilizer companies, including CF Industries Holdings Inc. and Nutrien Ltd., as they recorded profit windfalls.

However, other producers, such as Mosaic Co., have struggled significantly as the chemical inputs required for their products become more expensive. The fertilizer industry has long faced scrutiny due to the dominant market position of a few players, which control most of the country's supply. In fact, just four companies - CF Industries, Koch Inc., Nutrien, and Norway's Yara International ASA - control most of the nitrogen-based fertilizer sold in the US.

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In addition to the FTC investigation, the Justice Department is also conducting criminal and civil investigations into potential collusion on price by several leading producers of commercial fertilizers. The companies under scrutiny at the DOJ include phosphate and potash suppliers Nutrien and Mosaic, as well as CF Industries, Koch, and Yara International.