New Economic Analysis Has Farmers Raising Concerns about Looming Tariffs on  Nitrogen Fertilizers  

FARGO (January 12, 2022) – A new economic analysis released today by researchers at Texas  A&M University has corn growers raising concerns that pending tariffs on nitrogen fertilizers  will create shortages and cause prices to increase even more for farmers, according to the  National Corn Growers Association. 

“As part of this study, we conducted an historical analysis going back to 1980 and found that  fertilizer costs tend to go up when corn revenues increase,” lead researcher Joe Outlaw, Ph.D., noted. “Notably, these prices tend to go up exponentially even after accounting for natural gas  prices and higher demand.” 

The study notes that the price of one type of nitrogen fertilizer, called anhydrous ammonia,  increased by $688 per ton – $86,000 for a 1,000-acre farm – from the end of 2020 through the  end of October 2021.  

The study has farmers raising concerns about a petition by CF Industries, one of the country’s  major nitrogen producers, with U.S. International Trade Commission to impose tariffs on  nitrogen fertilizers imported from Trinidad & Tobago and Russia. The U.S. Department of  Commerce has since released a preliminary finding recommending tariffs, despite strong outcry  from farm groups.  

“Inflation has quickly become one of the biggest concerns for the upcoming year on the farm  and the skyrocketing fertilizer prices we are seeing is nothing less than shocking,” North Dakota  farmer and North Dakota Corn Growers Association President Rob Hanson said. “All at the same  time, these companies are seeing record earnings. This undoubtably will result in a ripple effect  throughout the farm economy. Harmful to the grower and to the consumer.”

The study was commissioned by state corn organizations in Texas, Missouri, Colorado, Georgia,  Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Nebraska, New York,  North Carolina, North Dakota, Ohio, South Carolina, South Dakota, Tennessee and Wisconsin. 

About the North Dakota Corn Growers Association 

The North Dakota Corn Growers Association (NDCGA) is a farmer-led membership organization  focusing on policy that impacts North Dakota corn producers. The NDCGA board of directors  consists of fourteen growers from seven districts along with two at-large and two industry  directors. 

About the National Corn Growers Association 

Founded in 1957, the National Corn Growers Association represents nearly 40,000 dues-paying  corn farmers nationwide and the interests of more than 300,000 growers who contribute  through corn checkoff programs in their states. NCGA and its 50 affiliated state associations and  checkoff organizations work together to create and increase opportunities for their members  and their industry.

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