WASHINGTON, D.C. (RFD NEWS) — U.S. Agriculture Secretary Brooke Rollins is raising alarms about mounting pressure in the fertilizer market, warning lawmakers that rising input costs and limited competition could pose a serious threat to the farm economy.
Speaking during a budget hearing on Capitol Hill, Rollins pointed to consolidation in the fertilizer sector as a key concern: “Fertilizer is the current crisis of the day, but as soon as we’re past this one, it will be seed or that it will be equipment,” she told Congress. “It is an overarching economic pending disaster. What has happened with the cost of inputs? And of course, if you look at the data, what has happened is you have a handful of companies that have basically taken over the market in all of the inputs.”
“It is an overarching economic pending disaster, what has happened with the cost of these inputs. Of course, if you look at the data, what has happened is you have a handful of companies that have basically taken over the market of all of the inputs, and so, what comes with that is the fact that we don’t have competition, and that’s what we really have to solve for.”
Rollins made sure to clarify in her testimony that the billions of aid recently distributed by the USDA’s Farmer Bridge Assistance Program mostly benefited row-crop farmers — and offset only some losses related to reduced grain trade with China — and that there’s more work to be done for U.S. farmers.
However, she told lawmakers there is a “pot of funding” from tariff revenues totaling “tens and tens and tens of billions” of dollars that could be used to strengthen domestic supply. She said an announcement addressing the issue is expected next week.
Trade Policy and Fertilizer Supply in Focus as Supplies Tighten
The conversation continued in a separate hearing, where lawmakers questioned U.S. Trade Representative Jamieson Greer about how trade policy is influencing fertilizer availability. In his hearing, Greer emphasized that although the U.S. has strong domestic fertilizer production, we still rely on key imports—particularly potash from Canada.
“The president’s quite focused on it. On the one hand, the good news is that we have a lot of domestic production of fertilizer right here in the United States. There are certain elements, like potash, that come in from Canada. We don’t have a lot of potash here that was never subject to any kind of tariff or anything like that,” Greer said. “You know, our sense is that, you know, the trade policy is a long-term policy. It’s about reshoring, it’s about manufacturing. But there are certain markets where we just don’t involve oil and gas or hydrocarbons, you know. You know, LNG is at the heart of some fertilizer manufacturing. Potash. We don’t have tariffs, other fertilizer.”
The warnings come as fertilizer supplies tighten heading into spring planting. New USDA data shows imports fell about 7 percent below average in the second half of last year, with some of the steepest declines in phosphate products. Transportation challenges are also contributing to delays, with barge traffic along the Mississippi River running below normal levels.
Global disruptions are adding further strain. Ongoing conflict in the Middle East has impacted nitrogen production and slowed key shipping routes, raising concerns about availability and pricing in the months ahead.
Reducing the Ag Trade Deficit and Expanding Export Growth
Rollins also highlighted the administration’s broader efforts to reduce the agricultural trade deficit, pointing to expanded overseas market access.
“Just in one year alone we have cut that deficit by 42% these numbers are really important for our farmers who are looking for these markets that had been closed to them and this year we’re expected to cut that deficit significantly more we expect based on the numbers this year for example corn exports to be up 25%, our ethanol exports to be up 20%, [and] our tree nut exports to be up 11%, our dairy exports to be up 17%. These are all really important moves for our farmers and ranchers in this country.”
Rollins added that the administration’s goal is to return to the agricultural trade surplus seen in 2020, though challenges remain as tariffs, global instability, and rising input costs continue to pressure farm margins.
Oil Prices Fall After Trump Announcement of Strait Reopening
Oil prices moved sharply lower after Iran announced the Strait of Hormuz is fully open to commercial shipping, easing immediate concerns over a major global energy chokepoint. Prices fell more than 10 percent, extending earlier losses as markets reacted to the development.
President Donald Trump posted on Truth Social that the U.S. naval blockade on Iranian ports would remain in place, while Iran’s foreign minister confirmed the waterway’s reopening following a cease-fire between Israel and Lebanon. Markets also responded to reports that the U.S. may hold talks with Iran as soon as this weekend.
RealAg Radio host Shaun Haney joined us on Friday’s Market Day Report to break down what the latest developments could mean for global markets and agriculture.
In his interview with RFD NEWS, Haney discussed the market’s reaction to falling oil prices and the implications of the Strait of Hormuz reopening for global trade flows and shipping costs.
Haney also addressed whether the price drop is likely to be short-lived or could signal a more sustained shift, depending on how geopolitical tensions and trade negotiations evolve in the coming days.
