Is Congress the Cure for Skyrocketing Fertilizer Prices? Collin Peterson Chimes In
Fertilizer Update 122321
Fertilizer prices have soared as top fertilizer companies in North America posted big stock gains this year, with some on pace for their best performance since 2009. One former Congressman who served as the House Agriculture Committee Chair says the fix for climbing prices probably won't come from Washington.
Reports show CF Industries is seeing the biggest gains this year as the major nitrogen producer has seen its stock soar 67% this year. Mosaic's stock increased 58% while Nutrien's stock climbed 49% so far.
Meanwhile, AgDay reported fertilizer prices for farmers continue to climb. Anhydrous ammonia prices are averaging more than $1,372 a ton, which is an all-time high.
So, what can be done about these higher prices? Farm Journal Washington Analyst Jim Wiesemeyer asked former Democratic Congressman Collin Peterson of Minnesota about it during this week's "Signal to Noise".
"We've looked into that i'm not sure there's much that can be done. It's the kind of supply and demand situation," says Peterson. "You know, it's kind of like Congress trying to legislate cattle prices or hog prices or legislate market order my milk marketing orders. It's not going to work when it comes to all these antitrust efforts. It sounds good. And you can get a press release out of it. But when has that ever made any difference."
Recently, National Corn Growers Association (NCGA), along with the state organizations, sent a letter to executives at Mosaic Co., expressing concern over fertilizer prices.
"We write to express our concern with your company’s trade practices," the letter stated. "As the second-largest phosphate fertilizer producer in the world, Mosaic has almost single-handedly erected an insurmountable tariff barrier to keep its top competitors in Morocco and Russia out of the U.S. phosphate market."
Mosaic responded to a recent Op-Ed by NCGA, as the fertilizer frenzy continues, while also talking through the complexity of the fertilizer markets with AgriTalk's Chip Flory on Thursday. You list to Flory's conversation with Mosaic's Andy Jung in the AgriTalk interview above.
Peterson was just named ProFarmer's "Ag Person of the Year." You can watch the entire conversation that covers dairy policy, fertilizer prices and more in this weekend "Signal to Noise," hosted by Chip Flory and Jim Wiesemeyer.
