US Federal Trade Commission Chair Lina M. Khan is slated to participate in a Community Listening Session on April 20 in Nevada, Iowa, regarding the sale of OCI Global’s Wever, Iowa-based Iowa Fertilizer Co. LLC (IFCo) to Koch Ag & Energy Solutions LLC.
The hosts of the listening session are listed as the Iowa Farmers Union, State Innovation Exchange (SIX) and State Reps. Elinor Levin (D), Megan Srinivas (D), and J.D. Scholten (D).
“This is an opportunity to share your perspectives on the recent acquisition of Iowa Fertilizer Co. by Koch Industries, what it means for your family, your farm, and for the future of our rural communities in Iowa,” IFU said on its Facebook page. While spaces are limited and RSVP’s are requested, the 10:30-12:00 pm event at the Gatherings on 6th Street is expected to be streamed online.
Koch announced in December that it was buying IFCo from OCI Global for $3.6 billion (GM Dec. 22, 2023). Since that time, the IFU, all 36 members of the Iowa House of Representatives (GM Feb. 16, p. 1), some 18 farm and environmental groups (GM Jan. 26, p. 1), and Iowa Auditor Rob Sand (GM Feb. 2, p. 1) have asked the FTC, the US Department of Justice, and Iowa Attorney General Brenna Bird (R) to investigate the acquisition.
The fact that state and federal dollars helped fund the Iowa Fertilizer plant in Wever is a major contention, especially since the deal was sold to taxpayers at the time as helping to increase competition in the fertilizer market. IFU’s Board of Directors in February referred to the proposed sale as “a slap in the face for taxpayers who invested about $550 million (as well as $1.2 billion of Iowa Finance Authority bonds)” to build the plant.
“The stated justification for the tax subsidies was to increase competition in the nitrogen fertilizer supply – a critical input for corn, the Midwest’s major crop,” the IFU said in a February statement. “In fact, the Brandstad/Reynolds administration cited Koch Industries’ market dominance as the reason why the investment was necessary. Now we are on the cusp of those tax dollars being used to increase Koch’s anti-competitive stranglehold.”
Iowa State Senator Jeff Reichman (R) has expressed enthusiastic support for the deal (GM Feb. 9, p. 1).