FTC Chairman Ferguson Says Agency Probing Fertilizer Industry

(Bloomberg) — The Federal Trade Commission recently opened an antitrust investigation into rising fertilizer costs in the United States, the chairman of the Federal Trade Commission said at an event in Texas on Thursday.

“At my behest, I am announcing that the commission recently launched a major industry-wide investigation into the rapid increase in fertilizer prices in this country, which has impacted many of our nation’s farmers, including everyone in this room,” said FTC Chairman Andrew Ferguson. he said. “USDA data showed that the largest increase in input costs for farmers in the United States since 2020 came from fertilizer.”

Ferguson made the announcement at an event held by Texas Corn Producers outside Dallas, where corn farmers from around the country attended to air their complaints about high fertilizer costs. Ferguson did not name any companies under investigation.

Fertilizer prices in the U.S. rose earlier this year following attacks on Iran that disrupted global trade flows for critical crop nutrients. This includes CF Industries Holdings Inc. and helped some fertilizer companies, including Nutrien Ltd., make a windfall profit; but Mosaic Co. Other manufacturers such as have been significantly challenged as the chemical inputs they need have also become more expensive. The industry has long faced scrutiny as only a few players control most of the country’s supply.

The Justice Department is also pursuing criminal and civil investigations into potential price collusion by some leading commercial fertilizer producers, Bloomberg previously reported.

According to Bloomberg, companies whose conduct is being investigated by the DOJ include phosphate and potash suppliers Nutrien and Mosaic, as well as CF Industries and Koch Inc. and Norwegian Yara International ASA. CF Industries, Koch, Yara and Nutrien control most of the nitrogen-based fertilizer sold in the United States.

Representatives for Mosaic, CF Industries, Koch and Nutrien did not immediately respond to requests for comment on Ferguson’s remarks. Yara did not immediately respond to a request for comment sent outside normal business hours.

–With help from Ilena Peng.

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