WASHINGTON, D.C. (RFD NEWS) — Rising input costs continue to strain farmer margins, as fuel and fertilizer expenses weigh heavily on producers and influence operational decisions heading into the growing season. Congressman Dusty Johnson (R-SD) joined us on Tuesday’s Market Day Report to discuss the concerns he is hearing from farmers and potential policy solutions being considered in Washington.
In his interview with RFD NEWS, Johnson said input costs remain a top concern for producers, noting that while commodity prices are not necessarily low, rising expenses are making it increasingly difficult for farmers to remain profitable.
“Well, input costs, and frankly, across the whole waterfront. And it is not just fertilizer, but obviously, fertilizer is a key problem. People feel like prices are okay—they’re not great on the row crop side—but inputs are making it awfully hard for people to make money.”
Johnson also discussed the USDA’s initiative, “One Farmer, One File,” and noted that feedback from producers has been overwhelmingly positive, adding that improved access to market data can help level the playing field in an industry where consolidation has increased the influence of larger companies.
“Having better data on a more regular basis and a mandatory report is going to do two things. Number one, it’s going to give producers the information they need to make better decisions. And number two, sometimes people are concerned about price manipulation and price gouging. We’ve seen in other industries that, unfortunately, that can happen. If you’ve got good, regular data, I think it’s better to sniff out bad behavior before it happens. Almost certainly most of the problems we’re facing from an inflation perspective are supply and demand generated rather than bad behavior—but let’s have the data, and that will help reassure us that that is the case.”
He also discussed the Fertilizer Transparency Act, which would require more frequent and mandatory reporting of fertilizer prices and sales volumes. Johnson said the goal is to provide producers with better data to make informed decisions and to help identify any potential market manipulation.
“It is a strongly bipartisan bill. We’ve got folks on both sides of the aisle who are co-sponsors. People we’re pushing are seeing it. I’m getting all kinds of positive feedback from the committee as well,” Johnson said. “And so we are hopeful that this is the kind of provision that could ride on a number of other must-pass pieces of legislation. And frankly, it’s non-controversial—hopefully enough that if we had to run it as a standalone bill, we could get that done as well.”
Johnson also outlined the next steps for the legislation, highlighting bipartisan support and the possibility of advancing the bill either as part of a larger package or as standalone legislation. He went on to address the idea of using tariff revenue to support domestic fertilizer production, emphasizing the need for increased U.S. supply while also pointing to regulatory challenges that can slow the development of new facilities.
“I do think supply and demand are at the heart of many of the problems we’re facing in input costs. And so what we can—man, I would love to see more of a domestic fertilizer industry. Of course, that would require a massive investment in new facilities,” he said. “We’re not so good at getting that done these days. It’s gotten harder and harder to build almost anything of any size and scope in this country—whether it’s about mining or new manufacturing facilities or new energy facilities, new transmission. This is becoming a uniquely American problem. [...] So we do need more domestic supply. That will require people to navigate a particularly complex regulatory issue. We should have some regulatory relief with appropriate safeguards if we want more of that kind of investment to happen in this country.”
Finally, he stressed the importance of expanding trade opportunities, noting that many producers would prefer stronger markets over additional aid as a long-term solution to financial pressures.
“The most important thing we can do is get more trade deals. The producers I talk to—listen, they want to make money in the market. I think they understand that we’ve gotten into, in the last maybe 10 years, probably too much reliance on off-farm income,” he said. “That’s not how they want to pay their bills. That’s not how they want to build equity and capital in their operation. We have made some progress in the last year on trade deals, but not enough. And so I think we’ve got an opportunity here to put our heads down. We’ve got some really good folks in the administration working on these trade deals. More trade deals would put upward pressure on price—or trade deals would put some downward pressure on price for inputs—and I think those two things would move us in the right direction pretty dramatically.”
