Lawmakers Want Caution on 2,4-D Duties

LINCOLN, Neb. (DTN) -- As the Biden administration considers preliminary duties on 2,4-D imports from China and India into the U.S., a bipartisan group of federal lawmakers this week urged the U.S. Department of Commerce to be cautious not to harm U.S. farmers.

In May 2024, the U.S. International Trade Commission voted to continue investigating dumping claims in response to a petition filed by Corteva Agriscience LLC.

Corteva claimed in its petition filed on March 14, 2024, that 2,4-D imports from China and India were injuring or threatening to injure the U.S. ag chemical industry.

Corteva said in its original petition that Chinese and Indian 2,4-D made up 81% of the chemical's imports into the U.S.

Corteva said producers of the herbicide from the two countries were exporting subsidized products into the U.S. Dumping takes place when a foreign producer sells a product in the U.S. at a price below a producer's sale price in its country of origin.

The petition estimated the dumping margin for 2,4-D is between 142% and 388% for China and 55% to 139% for India. Because of the dumping, Corteva said, U.S. 2,4-D producers "continually lost sales and revenues" and that led to Corteva's lost market share and declining sales.

"As members of Congress representing agricultural producers, we urge the Department of Commerce to carefully review the facts as it calculates any preliminary duties during this investigation," said the letter signed by 20 lawmakers to DOC Secretary Gina Raimondo on Monday.

"We are concerned that tariffs on 2,4-D imports could compromise reliable, affordable access to agricultural inputs. The nature of agricultural production requires planning well in advance of a crop year, requiring careful calculations and management decisions to remain globally competitive. Herbicides containing the major ingredient 2,4-D are critical management tools for farmers across the United States of various crops including barley, corn, durum, sorghum, soybeans and wheat."

The letter is signed by Republican Sens. Charles Grassley, Iowa; Jerry Moran, Kansas; Deb Fischer, Nebraska; Roger Marshall, Kansas; Pete Ricketts, Nebraska; along with 15 members of the U.S. House of Representatives including Republicans Adrian Smith, Nebraska; Mike Flood, Nebraska; Don Bacon, Nebraska; Austin Scott, Georgia; Greg Pence, Indiana; Marcus Molinaro, New York; Mark Alford, Missouri; Darin LaHood, Illinois; John Moolenaar, Michigan; Dusty Johnson, South Dakota; Randy Feenstra, Iowa; and David Kustoff, Tennessee.

Democrats joining on the letter include Jimmy Panetta, California; Dan Newhouse, Washington; and Jim Costa, California.

The National Corn Growers Association said in a May 2024 news release that since Corteva was the only U.S. manufacturer of 2,4-D impeding imports would be costly and duties would "intensify what is already a difficult period for many growers."

In their letter to Raimondo, the lawmakers said USDA data shows net-farm income is expected to decrease by 25% from 2023 to 2024.

USDA also has projected record-high farm production cash expenses for 2024. At the same time, USDA has projected total cash receipts for crops in 2024 to be 11.7% lower than in 2022.

"Without careful consideration of the facts during these preliminary investigations, new tariffs will result in difficulties for producers who rely on this critical input," the letter said.

"This will only exacerbate their economic challenges. After emerging from the supply chain shortages caused by the pandemic, farmers are keenly aware of how these challenges affect their ability to feed, fuel, and clothe the world. Changes in the duties owed on these products could have far-reaching impacts on producers as they plan their expenses for the crop year."

On April 18, 2024, the NCGA, along with the National Association of Wheat Growers, National Barley Growers Association, National Sorghum Producers, U.S. Durum Growers Association and the American Soybean Association, sent a letter to David S. Johanson, chairman of the U.S. International Trade Commission, asking him to vote against the petition.

Read more on DTN:

"US Trade Body Investigates 2,4-D Claim," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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