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Iowa Investigating Skyrocketing Ag Input Costs

(Des Moines, IA) -- The Iowa Attorney General's Office is launching a formal investigation into skyrocketing products farmers need to grow crops.

Farmers and commodity groups have complained that since January 2021, anhydrous ammonia has increased 315%. Urea has increased by 214%, liquid nitrogen by 290%, monoammonium phosphate (MAP) by 171%, and potash by 213%, according to the most recent data supplied by USDA’s Agricultural Marketing Services.   

“These sudden and significant price increases warrant an analysis into the underlying causes,” Miller said. “We are not looking at any legal theory or from an enforcement point of view at this time. We want to know, to the extent possible, why this happened, what were the basic factors that caused the price increase, and whether the increases can be explained by supply and demand.” 

The leadership of the Iowa Corn Growers Association approached Miller with concerns about the price increases. 

“Farmers saw higher-than-average prices for corn and soybeans last year, but any profits will be eaten by increased fertilizer prices,” Miller said. 

The Attorney General’s Office is partnering with Iowa State University agriculture economist John Crespi, director of ISU’s Center for Agricultural and Rural Development, who has agreed to prepare an economic summary of fertilizer markets. 

Miller sent letters to the CEOs of the major fertilizer manufacturers: Mosaic, Nutrien, CF Industries, Koch Industries, and OCI N.V. (owner of Iowa Fertilizer Co.) The letters request that the manufacturers provide their reasons for the price increases.  

“We would like your side of the story,” Miller wrote to the CEOs. 

Miller noted that a Texas A&M study shows that since 1970, increase in crop returns for farmers tend to coincide with even higher increases in fertilizer expenditures.     

The data suggest that manufacturers are taking advantage of higher farm incomes to increase their returns, but we need more information,” Miller said. 

Another Texas A&M study released in January projected that fertilizer price increases would cost corn and soybean growers an additional $128,000 on average this year.

Miller’s office has had initial discussions with the staff of other state attorneys general about the fertilizer price increases. As president of the National Association of Attorneys General, Miller is focusing on consumer protection issues and has made this issue as part of his presidential initiative. 

“The fertilizer increases could hit the pocketbooks of all consumers in the form of higher food prices,” Miller said. “I hope to use my presidency to draw attention to this crisis.”  

Miller says he hopes to have some clarity on the issue within two to three months.


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