WASHINGTON (RFD-TV) — Sens. Chuck Grassley (R-IA), Tammy Baldwin (D-WI), and Joni Ernst (R-IA) have reintroduced bipartisan legislation aimed at addressing the soaring cost of fertilizer, one of the largest expenses for U.S. farmers, according to a press release published by Sen. Grassley’s office on Tuesday.
The Fertilizer Research Act (PDF version) would direct the U.S. Department of Agriculture (USDA) to study competition and pricing trends in the fertilizer market and publish a public report within one year of enactment. That report would examine factors such as market concentration, import reliance, tariffs, and anti-dumping duties, while also assessing emerging fertilizer technologies and whether current price reporting offers enough transparency.
“Fertilizer is one of the ag industry’s biggest inputs, and family farmers across the nation are severely hurting right now due to its high cost,” said Grassley, who sits on the Senate Agriculture Committee, along with bill co-sponsor, Sen. Ernst.
While Ernst emphasized the need for “clarity and certainty as harvest approaches,” Sen. Baldwin called the bill “a step toward lowering input costs so farmers can continue to feed America.”
The bill has bipartisan backing, with Sen. Raphael Warnock (D-Ga.) signing on as a cosponsor, and is supported by a broad coalition of farm groups including the National Corn Growers Association (NCGA), American Soybean Association (ASA), American Farm Bureau Federation (AFBF), National Farmers Union (NFU), Iowa Corn Growers Association (ICGA), and Iowa Soybean Association (ISA).
“Farmers are getting squeezed on all sides by high input costs, corporate consolidation, and unfair markets; fertilizer is a major part of that pressure,” said NFU President Rob Larew. “Studies like this increase transparency, providing a clearer picture of what’s driving price and supply. We thank Senators Grassley and Baldwin for introducing this legislation and recognizing that accountability and competition in farm inputs are essential if family farmers and ranchers are going to have a fair shot in the marketplace.”
Farm leaders said the legislation would shine a needed spotlight on an industry where fertilizer costs are projected to account for 36 percent of operating expenses for corn growers in 2025.
“Fertilizer prices have continued to increase, putting pressure on Iowa corn farmers who are already faced with low corn prices and increased input costs, making profit margins slim or even nonexistent,” said Mark Mueller, ICGA President and farmer from Waverly, Iowa. “We need to assess the fertilizer industry to better understand pricing practices, tariffs, and the exertion of market power by companies within the industry.”
Ag industry groups also praised the bill’s attention to new technologies, such as biologicals, that could help farmers cut costs, improve efficiency, and enhance soil health.
What Do Current Fertilizer Prices Look Like?
Tariffs are driving up input costs, with fertilizer prices increasing by $100 per ton and machinery costs rising due to steel and parts duties.
Lately, fertilizer prices have been mixed, but analysts with DTN found only one moved beyond five percent. Phosphorus fertilizer prices gained exactly five percent in recent weeks, holding around $860 per ton. While fertilizer prices remain off the historic highs we saw back in 2022, the latest report shows that eight major types are now more expensive than they were a year ago.
The Federal Reserve’s most recent “Beige Book” also indicates that the farm economy is under considerable pressure but remains resilient. One concern raised by the Fed was rising input costs, particularly fertilizer, “due to higher tariffs,” which in turn “raised farmers’ concerns over financing costs for their 2026 operations.” The Fed also reports that farmers may need to use safety nets more in the coming year, with enhanced marketing strategies.
Economists at the Kansas City Fed also report that weaker crop prices over the past year have reduced farm income. That has led to lower loan repayment rates and more renewals and extensions. Last year, farm banks issued more than $115 billion in agricultural loans.
When it comes to fertilizer prices, not all commodities are affected equally: flexible row crops, such as corn and soybeans, can adjust more easily than permanent operations like orchards or dairies.
Turning the Tide on Rising Fertilizer Costs
Fertilizer prices have been on lawmakers’ minds for years, as the input cost reached its peak in 2022.
In December 2024, under the leadership of former Ag Secretary Tom Vilsack, the USDA announced an additional $100 million in investments toward fertilizer production through the Fertilizer Production Expansion Program, which Vilsack hoped would lower input costs while increasing options for farmers. At that point, the USDA had spent more than half a billion dollars on more than 75 fertilizer facilities.
That significant push for increased domestic fertilizer production by Vilsack’s USDA likely had a positive impact on steady prices through spring planting and summer. In June, economists were even caught off guard by the lack of fertilizer price action, one saying, they were “surprised they aren’t higher.”
However, it remains unclear if that investment will be enough to turn the tide for farmers in the future. Especially in light of President Trump’s controversial trade strategy (now under review by the U.S. Supreme Court), which emphasizes reciprocal tariffs, has complicated key international trade relationships with countries like Canada and Mexico, and nearly severed others like China, all while increasing key costs for farmers.
In May 2025, analysts closely monitored movements in the fertilizer market out of Asia. While the U.S. has not imported any fertilizer from China in recent years, experts warn that China’s trade policies could still be a factor in global prices.
Trump’s tariff strategy had some impact, an expert with StoneX explained, but it was China’s own export strategy that may be having a bigger impact, shifting global supply chains and keeping more products at home.
“Since 2022, China, when you look at them, they would normally export about five- to five-and-a-half million tons of Urea per year,” Stone X Vice President Josh Linville told RFD-TV. “That started to fall off as we got into that early ’22 cycle when China started to step in. But it’s picked up the pace since 2024. Last year, their exports just barely made over a quarter-million tons total. Not a single month. Total for the entire calendar year. Q-1 2025, those exports have fallen shy of 4,000 tons. We’re no longer measuring Chinese exports in vessels. We’re measuring them in containers.”
Linville said China’s shakeup led to lower prices for Chinese buyers and higher costs elsewhere.
Looking Ahead: Fall Fertilizer Price Predictions
While the Trump Administration and Ag Secretary Brooke Rollins search for new markets for U.S. crops, ag lawmakers are looking for additional ways to help farmers make ends meet as they head into harvest season.
Reducing fertilizer costs for already-struggling farmers is a top priority for ag leaders like Sen. Grassley, who warned back in July that, if anything, fertilizer prices would continue to rise into the fall harvest.
While prices are down significantly from highs we saw in early 2022, they are still above historical trends. Researchers at the University of Illinois found nitrogen prices have been as much as 20 percent higher year-over-year.
“The issue will become even more acute in the fall as farmers look to purchase next year’s fertilizer,” Grassley said. “I’ll continue pushing for the Administration to keep farmer input costs in mind.”
