Farm Bureau calls for intervention in fertilizer prices

Amid disruptions to shipping through the Strait of Hormuz and the impact on fertilizer availability and prices, American Farm Bureau Federation President Zippy Duvall today urged President Trump to intervene take action. 

In a letter to Trump, Duvall said, “Like oil, global fertilizer markets are highly vulnerable to disruptions in maritime transit routes, especially through the Strait of Hormuz, a critical shipping corridor for key fertilizer materials and finished fertilizer.”

“Further, the recent energy production halts in the Middle East will affect the price and availability of many downstream products farmers depend upon,” Duvall said. “These supply chain shocks are expected to drive already record-high input prices even higher at a time when farm margins are already extremely tight and many farmers are underwater.”

The letter lists seven recommendations to lessen the impact of the expected fertilizer shortage. They range from utilizing the U.S. Navy to provide safe transit for fertilizer shipments through the Strait of Hormuz to leveraging federal tools such as those available through the U.S. International Development Finance Corporation to address insurance or financing barriers for vessels transporting fertilizer cargo.