U.S. deputy farm secretary to meet with Mosaic amid high fertilizer prices
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“Fertilizer is not cheap, but manufacturers are not gouging right now,” said analyst Josh Linville. Photo: Getty Images Plus
U.S. Deputy Secretary of Agriculture Stephen Vaden will meet with fertilizer company Mosaic this week, he told journalists on Monday, as the U.S. and Israel’s war on Iran drives up fertilizer prices for farmers already facing a sagging farm economy.
Vaden criticized Mosaic’s announcement last week that it plans to idle two phosphate production facilities in Brazil as part of a cost-saving initiative. The company said the move would reduce its annual phosphate production by about 1 million tonnes.
WHY IT MATTERS: Canadian and U.S. farmers have seen already strained margins shrink as war in the Middle East has led to spiking fertilizer and fuel prices.
“What possible motivation other than further constraining supply, sowing uncertainty and padding their already sufficient profit margins could they possibly have?” Vaden said at a meeting of the North American Agricultural Journalists.
Vaden has spoken with the Department of Justice and the Federal Trade Commission about fertilizer prices and met with fertilizer company Nutrien a few weeks ago, he said.
U.S. won’t accept ‘price gouging’ Trump says
President Donald Trump posted to Truth Social on April 11 that “the United States will not accept price gouging from the fertilizer monopoly” during the war with Iran, after which Mosaic posted to X that fertilizer prices are driven by supply and demand, weather, geopolitical conditions and other factors
“So disappointed in this response,” Agriculture Secretary Brooke Rollins posted to X on Monday, referring to Mosaic’s post
Mosaic did not immediately respond to a request for comment.
Following Trump’s April 11 comments, analyst Josh Linville said on X that NOLA (New Orleans) urea is about US$150 cheaper than it should be compared to global economics. Phosphate exports are rapid “due to our discount vs the world,” said Linville, who is vice president for fertilizer with StoneX Group Inc.
“Fertilizer is not cheap, but manufacturers are not gouging right now,” he said.
—Additional reporting by Geralyn Wichers, Glacier FarmMedia
