For years, U.S. farmers have argued they face higher production costs than competitors such as Brazil while selling into the same global commodity market. A new analysis released Tuesday by the National Corn Growers Association (NCGA) suggests those concerns are well founded.
The study, conducted by Kynetec for NCGA, found U.S. corn growers consistently paid more than Brazilian farmers for major crop inputs between 2023 and 2025, even after adjusting for taxes, currency differences and purchasing power.
Among the findings:
- U.S. corn seed prices averaged 68% higher than Brazil’s
- U.S. corn insecticide prices averaged 87% higher
- Some fungicides cost more than double what Brazilian farmers paid
- Many herbicide comparisons also approached double Brazilian price levels
Where The Cost Disadvantage Begins
For NCGA, the findings reinforce a growing concern that American growers are at a structural disadvantage before the crop is even planted.
“We’re producing the same global commodity that’s largely sold at the same global price,” says NCGA Chief Economist Krista Swanson. “When we’re at a disadvantage in terms of the costs to produce it, especially for critical inputs we purchase year after year, it becomes very difficult for U.S. farmers to remain competitive over the long term.”
Swanson says NCGA wanted to look beyond broad comparisons of production costs and focus instead on what farmers are actually paying at the point of purchase for seed and crop protection products. Fertilizer was not included in the analysis.
“We really wanted to dig deeper into those input products and what the marketplace is offering farmers,” Swanson says. “We looked at prices without taxes, adjusted for currency differences and tried to get as close as possible to what a farmer is actually paying.”
She says exchange rates explain part of the gap, but not all of it. In NCGA’s view, market structure and product availability appear to be playing a larger role.
According to Swanson, Brazilian farmers generally have broader access to generic products and single active ingredient options, while U.S. farmers are more often buying premium premixes sold by major manufacturers.
“Those products may bring real value and farmers definitely recognize performance, stewardship, innovation and service,” she says. “But when meaningful price gaps remain even among similar products, it raises questions about transparency, competition and whether U.S. growers have enough choices.”
Swanson says the study examined a wide range of seed technologies and crop protection products in both countries. While farming conditions, pest pressures and hybrid choices differ between Brazil and the United States, she says the broader pattern remained consistent.
“Across the board, we found U.S. farmers are paying more for seed and crop protection inputs,” Swanson says. “We sliced it and diced it a lot of different ways, looking at specific products, traits and technologies. The biggest takeaway isn’t one individual product. It’s the consistent pattern that no matter how we looked at it, U.S. farmers are paying more.”
Same Commodity, Different Cost Burden
That price gap carries added weight because U.S. and Brazilian farmers are producing many of the same commodities for the same world market.
Some of the largest differences showed up in fungicides, where Swanson says U.S. farmers were sometimes paying more than twice what Brazilian growers paid for comparable products. Even glyphosate, one of the most widely used crop protection products in both countries, showed significant differences.
NCGA leaders say those findings should prompt a broader discussion about transparency in agricultural input pricing and whether farmers in the United States have enough lower-cost options.
“We need more transparency from the input industry,” Swanson says. “There may be situations where there is additional value, but we need to understand where those costs truly add value and where there are unnecessary costs that should be eliminated.”
Policy Fight Could Add More Pressure
The report comes as farm profitability remains under pressure across U.S. agriculture and as Monsanto has asked the International Trade Commission and U.S. Department of Commerce to impose countervailing duties on imported glyphosate. NCGA has warned that such a move could drive input costs even higher if approved.
NCGA First Vice President Matt Frostic, a Michigan corn farmer, says the group plans to use the report in three ways:
- To push for more pricing transparency from input suppliers,
- To support policies aimed at improving U.S. competitiveness with Brazil
- To pursue changes to the countervailing duty process so public interest is considered in trade cases
“It’s important we push back, and find that margin for that American farmer,” Frostic says. “We’re also here to work with the industry to come up with answers. This isn’t a finger-pointing session. They need to understand there’s little or no margin in what family farmers are making, and it cannot continue or the landscape will dramatically change.”
‘Scary Numbers’ for Growers
For NCGA President Jed Bower, an Ohio farmer, the findings confirm concerns many growers have held for years.
“It sure doesn’t look like we’re the low-cost producer anymore,” Bower says. “The study shows the American farmer is really paying for all the innovation and research for the rest of the world to take advantage of.”
Bower says growers continue to value the companies that have developed new agricultural technologies, but he argued the current pricing structure is becoming harder to justify as margins tighten.
“They’ve brought tremendous innovations that have allowed us to raise these incredible yields,” he says. “But when we’re being gouged, it’s just sad.”
He says many farmers may not be surprised by the overall direction of the findings, even if the size of the gap is striking.
“I think a lot of American growers have felt this in the back of their minds for a long time,” Bower says. “These are scary numbers, and it’s not just corn. We’re seeing similar issues for our soybean-growing friends as well.”
NCGA says the analysis is meant to provide data for a broader conversation about the cost structure facing U.S. farmers. As policymakers and farm groups debate ways to improve profitability, the organization argues the study highlights a basic problem: American growers are competing globally while paying significantly more for many of the core inputs needed to raise the same crops.
