Pressure Rises on Fertilizer Industry

OMAHA (DTN) -- Pressure on the fertilizer industry is mounting as agricultural groups seek relief, with at least one new federal lawsuit against the industry having now been filed and farm groups pressing policymakers for action.

The war in Iran that has tied up the Strait of Hormuz continues to put pressure on global fertilizer prices and supplies. Responses from commodity groups, agricultural retailers and others are beginning to stack up.

Among some of the actions taken:

-- A federal class-action lawsuit was filed against major fertilizer companies in the U.S. District Court of Colorado.

-- 64 agricultural groups also sent a letter to the CEOs of Mosaic and Simplot, urging them to support removing duties against imported phosphate from Morocco.

-- Agricultural retailers and state agribusiness groups wrote President Donald Trump, outlining several possible actions to ensure the flow of fertilizer to producers.

-- The Treasury Department has waived sanctions on Venezuela to boost imports of fertilizer and petroleum products. Venezuela last year exported about 400,000 metric tons of nitrogen, mostly urea, which means Venezuela's total exports would supply about 5% of U.S. urea needs in a given year.

-- At least one U.S. senator has also sent letters to fertilizer companies seeking answers about price hikes.

Agriculture Secretary Brooke Rollins, speaking Friday at the White House, said the administration is looking at options to help farmers deal with fertilizer prices, which could include working with Congress on another aid package.

"We are very close to having an announcement on some solutions on what that looks like," Rollins said. "We're looking at every potential avenue to keep the fertilizer costs down as farmers are going into planting season."

LAWSUIT AGAINST FERTILIZER COMPANIES

The lawsuit targets the country's largest fertilizer companies: Mosaic Co., Nutrien, CF Industries, Koch Agronomic Services, Yara International, Canpotex Ltd., and affiliated subsidiaries of Nutrien, CF and Yara.

The lawsuit alleges fertilizer companies have conspired to "fix, raise, maintain and/or stabilize prices" for nitrogen, phosphorus and potash since the start of 2021. The lawsuit also appears to piggyback off the prospect that the Justice Department's Antitrust Division is investigating whether fertilizer companies colluded to raise prices, as Bloomberg first reported on March 4.

The lawsuit highlights that farmers saw fertilizer prices increase 60% in 2021-22, "an increase that added an estimated $128,000 in costs per farm in 2022 -- while defendants reported record profits," the law firm DiCello Levitt stated.

"Most people will never think about the cost of fertilizer, but American farmers live with it every day," said Greg Asciolla, partner and chair of DiCello Levitt's antitrust and competition litigation. "When prices for an essential input are artificially inflated, the impact falls squarely on farmers and ripples across the food system. This case is about restoring competition in a market that is foundational to American agriculture."

While filed as a class-action suit, the only named plaintiff listed is Union Line Farms, Inc., a farm in Hopkinton, Iowa.

DTN reached out to The Fertilizer Institute for comment but did not receive a response.

PRICE GOUGING QUESTIONS

Sen. Josh Hawley, R-Mo., also sent his own letter to major fertilizer companies and Attorney General Pam Bondi "to ensure fertilizer companies are not engaged in price gouging or manipulating market conditions in the wake of the conflict in Iran."

AG GROUPS' LETTER TO MOSAIC, SIMPLOT

A collection of 64 agricultural groups also sent a letter Friday to the CEOs of Mosaic and J.R. Simplot, urging them to support removing countervailing duties on phosphate products from Morocco.

In 2021, the Commerce Department put a 19.97% countervailing duty on phosphate from Morocco and its state-owned fertilizer company, OCP. The initial case sparking the duties was filed by Mosaic. Those countervailing duties have been a focus of constant litigation and appeals since then.

On Dec. 16, 2025, the U.S. Court of International Trade issued a final ruling cutting duties on Moroccan phosphate down to 2.11%. Mosaic then appealed the ruling, but that appeal was dismissed based on an agreement by all parties on March 4, according to the U.S. Court of Appeals for the Federal Circuit.

The letter from farm groups to Mosaic and Simplot called on the companies to withdraw their support for duties on Moroccan fertilizer.

"While this action is seemingly minor relative to the current macro environment, including the scope of market disruptions and as well as market structure, (it) is one step that can be taken now," the agricultural groups wrote.

AG RETAILERS

Following a similar letter last week by the American Farm Bureau Federation, the Agricultural Retailers Association (ARA) and several state agribusiness groups also wrote Trump on Friday, expressing concern about fertilizer supply disruptions "and the potential for broader impacts on agricultural production and rural economies."

The groups called for protecting "uninterrupted fertilizer movement through global shipping lanes" and prioritizing fertilizer at ports and through other domestic shipping routes. Along with that, ARA and others also called for "temporarily easing trade and tariff constraints on fertilizer and key input materials where appropriate" as well as considering the use of emergency powers to reduce regulatory burdens on domestic fertilizer plants.

"Agricultural retailers are more than suppliers -- they are the trusted partners to farmers, major employers in rural communities and critical participants in the agricultural supply chain," the letter stated. "The decisions made today will determine whether future disruptions can be managed effectively or escalate into broader food supply and inflationary challenges."

FERTILIZER STOCKS

Meanwhile, the war in Iran has pushed investor interest in fertilizer stocks, as the Wall Street Journal reported. CF Industries saw its stock price drive up from $99 a share on Feb. 27 to an all-time high of $137 on March 12.

No sooner were the stock prices spotlighted than they began to come down. CF's stock price began falling Friday and was down to $122 on Monday, still a 23% boost from February prices.

Nutrien's stock moved from $102 at the end of February to more than $114 a share on March 12 before starting to decline. Nutrien was at $106 a share on Monday.

Mosaic saw its stock price hit $31 a share, but it too has fallen since Friday. Mosaic's stock was trading just $1 higher than before the war began.

See, "Despite US and Israel-Iran Conflict, Retail Fertilizers Start March Mixed," https://www.dtnpf.com/…

Also see, "War Heightens Ag Input Price Concerns," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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