Both The Fertilizer Institute (TFI) and the Agricultural Retailers Association (ARA) provided testimony at a Feb. 28 hearing before the House Committee on Agriculture on “Uncertainty, Inflation, Regulations: Challenges for American Agriculture.”
In his opening remarks, Committee Chairman Rep. Glenn Thompson (R-Pa.) said the focus of the hearing was on the “headwinds facing production agriculture” as Congress prepares to write a new Farm Bill in 2023. Thompson noted a “modest production decline in recent years” caused by the COVID-19 pandemic, geopolitical unrest, and “incessant government intrusion.
“Over the last several years, I have traveled to more than 40 states and have heard firsthand from our farmers on issues related to labor, fuel, fertilizer, inflation, and interest rates,” Thompson said, noting that the average cost of diesel fuel jumped 95% between 2020 and 2022, while fertilizer prices increased 125% in 2021 and an additional 30% in the first five months of 2022.
“Urea, the most applied nitrogen fertilizer, increased 205% in price between 2020 and 2022,” he said. “Last week marked one year since Russia’s invasion of Ukraine, which perpetuates a disrupted global food system, resulting in continued increased energy prices, fertilizer cost spikes and shortages, and worsening food scarcities in developing countries. At the same time, American consumers are watching in dismay as their grocery and energy bills skyrocket.”
Thompson criticized the Biden Administration for ignoring these issues and neglecting farmers and consumers. “In fact, this administration continues to promote nonsensical regulations and policies that create needless uncertainty for farmers, ranchers, and working families, further limiting our ability to meet the growing food demands of our nation and the world,” he said.
TFI President and CEO Corey Rosenbusch focused much of his testimony on the fact that fertilizer is a globally traded commodity subject to international pressures. These include sanctions on Belarus, which supplies 20% of the world’s potash; restrictions imposed by China on fertilizer exports; and the invasion of Ukraine by Russia, which has historically provided 20% of global fertilizer and is the world’s largest fertilizer exporter.
“Domestic production of fertilizer accounts for only 7% of global production, and 90% of all fertilizer usage happens outside of the United States,” Rosenbusch said. “Geopolitical events have been the biggest disrupter to fertilizer markets in recent years.”
While acknowledging that Congress cannot control Russia and China, Rosenbusch outlined several areas where government policy could have a positive impact on agriculture and improve domestic production and supply.
“Regulatory certainty is perhaps the most significant area Congress could help,” he said. “Additionally, listing potash and phosphate as critical minerals, energy policy that supports an abundant and affordable supply of natural gas, permitting reform to streamline long delayed fertilizer projects, focusing on USDA conservation programs that empower agronomists and certified crop advisors to help farmers with nutrient management, and a focus on supply chain bottlenecks through improving rail service and promoting driver recruitment and retention.”
Michael Twining of Willard Agri-Service testified at the hearing on behalf of ARA, which also submitted written testimony. Twining, who serves on the ARA Board of Directors and as Vice Chair of the ARA Public Policy Committee, focused his comments on pesticide registration, energy, and the contentious “Waters of the United States” rule.
“We are grateful to the Committee for this opportunity to offer recommendations aligned with the current challenges facing the agricultural industry,” said ARA President and CEO Daren Coppock. “Hearing directly from an ag retailer like Mike will underscore the need for Congress and the Biden administration to remove regulatory barriers in an effort to boost our farm economies.”
Other witnesses at the hearing included Zippy Duvall, President of the American Farm Bureau Federation; Peter Friedmann, Executive Director of the Agriculture Transportation Coalition; Mike Brown, President of the National Chicken Council; and Rob Larew, President of the National Farmers Union.