New Legislation Would Address High Fertilizer Costs

For some farmers and producers struggling with depressed commodity prices and tariffs that, at least for now, have limited export potential and increased costs, they may find optimism in legislation proposed in the U.S. House of Representatives that targets high fertilizer costs. Although, the legislation does not promise immediate help.

High fertilizer prices remain one of the most urgent challenges facing U.S. farmers. House lawmakers have now joined a previous effort in the U.S. Senate to bring transparency and relief to the input market.

U.S. Representative Ashley Hinson (R-IA) introduced a companion to the already-proposed U.S. Senate legislation, titled the Fertilizer Research Act. Joining her as original co-sponsors were Representatives Nikki Budzinski (D-IL), Marie Gluesenkamp Perez (D-WA), and Randy Feenstra (R-IA).

Hinson, who is running for the U.S. Senate seat in 2026 held by the retiring Joni Ernst, has heard complaints from farmers in her ag-dependent state about fertilizer prices.

“America’s farmers are being squeezed by high fertilizer costs and low commodity prices, making it incredibly difficult to afford the inputs needed to maintain strong yields,” Hinson said in a statement.

She added, “Family farmers in Iowa tell me they need greater price transparency and stability, and my bipartisan bill delivers just that by increasing visibility into the factors that drive costs and supply.”

The legislation would require the U.S. Department of Agriculture to conduct a comprehensive study of the fertilizer market—including competition, pricing dynamics, and global trade factors—and publish a report within one year of enactment.

Budzinksi said in a statement, “Illinois growers are struggling to make ends meet because of high input costs, including the cost of fertilizer. Fertilizer is an essential tool for farmers to maximize their crop yields, but they often lack insight into how fertilizer prices are determined – making it harder to balance their books.”

She concluded, “I’m proud to introduce this common-sense, bipartisan legislation to give our farmers more transparency and ensure that farm inputs are priced fairly.” 

Senate Proposal to Study Fertilizer Prices

In September, Senators Chuck Grassley (R-IA), Tammy Baldwin (D-WI), and Joni Ernst (R-IA) introduced the original legislation to study fertilizer prices

Among the factors that the study might consider:

• Price drivers

• Cost trends over past 25 years

• Impact of tariffs

• Imports

• Price transparency

• Regulatory burdens

• Emerging technologies (e.g., biological fertilizer)

• Concentration in fertilizer industry

• Possible anticompetitive behavior in the fertilizer industry

Increased Domestic Fertilizer Production

The U.S. Senate Judiciary Committee held a hearing last month and discussed fertilizer prices. One of the proposed solutions to bring down costs suggested higher U.S. production.

The Fertilizer Institute’s CEO Corey Rosenbusch explained to senators that U.S. farmers have little control over fertilizer costs. “Fertilizer is a globally traded commodity,” Rosenbusch said as reported by Agriculture of America. “So, while we cannot directly influence prices, we can bolster domestic supply to help mitigate geopolitical risk for our American farmers.

He added, “Fertilizer production facilities are very capital-intensive, sometimes costing as much as five billion dollars for a nitrogen facility, or ten years to develop a potash or phosphate mine.”

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