Grain Bins


Texas A&M Fertilizer Study

Posted on April 15, 2024
Fertilizer Web

In 2021 and 2022, the fertilizer industry saw record-high prices, sparking concerns among agricultural producers and policymakers regarding industry concentration and its impact on competition. According to a report (link) from the Agricultural and Food Policy Center at Texas A&M University, research indicates that increases in natural gas prices accounted for less than 20% of the rise in fertilizer prices for producers in 2022. Additionally, the report confirms previous findings that the U.S. fertilizer industry is moderately to highly concentrated. The report’s authors say that further analysis is required to refine these estimates and thoroughly assess the industry's market power. To conduct this research effectively, they note, additional data, including both price and volume information, is necessary. Congress has the option to mandate price reporting to acquire this data. Should Congress choose this approach, the authors say it may also want to consider ensuring that USDA contracts independent analysts to analyze the data.

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