Baton Rouge-Agriculture and Forestry Commissioner Mike Strain, DVM, has called on the Louisiana congressional delegation and the United States Department of Agriculture to investigate the disparity between the demand and cost of phosphate fertilizer. In a letter addressed to the delegation and USDA Secretary Ed Schafer, Strain said the demand for phosphate between the years 2001-2006 has increased 13 percent, while current retail costs to agricultural producers have risen 365 percent. “Phosphate fertilizers have gone from $4.70 per unit to $17.15 this year,” Strain said. “I’d like to see what can be done to help push those costs down.” Strain said the costs of raw materials used in fertilizer production have all risen, but sulfur prices have shot up dramatically. “Sulfur cost $28.70 per ton in 2003 and $40 per ton in 2007,” Strain said. “In 2008, open market spot prices for sulfur can be as much as $500 per ton. In addition, there are so many railroad restrictions and regulations that rail transportation costs to ship ammonia and sulfuric acid have risen disproportionately.” Strain said rising fertilizer costs will drastically affect commodity prices. “Fertilizer and fuel are two of the greatest input costs our farmers, ranchers and foresters must overcome to be profitable,” Strain said. “Agricultural producers figure their profit margins and decide what crops to plant based on these numbers. These skyrocketing costs will have a major impact on our nation’s ability to produce affordable fuel and fiber.” The North Dakota congressional delegation has already asked the Federal Trade Commission and the USDA to investigate higher fertilizer prices (GM Archives). The FTC is pursuing the matter.
Transparency Across the Fertilizer Value-Chain