By Jessica Domel
Multimedia Reporter

The Federal Trade Commission (FTC) officially launched an investigation into the fertilizer industry’s prices and market concentration.

“I’m announcing that, on my order, the commission some time ago commenced a major industry-wide investigation into the precipitous rise of fertilizer prices in this country, which has affected so many of our nation’s farmers, including everyone in this room, including the issuance of compulsory process,” FTC Chairman Andrew Ferguson announced at a North Texas event hosted by Texas Corn Producers and other corn organizations.

Data from the U.S. Department of Agriculture (USDA) shows the single largest increase in farm input costs across the United States since 2020 has been fertilizer.

“These continued price increases are not something our nation, much less our farmers, can continue to ignore,” Ferguson said.

According to the American Farm Bureau Federation (AFBF), increased fertilizer costs are expected to impact every major field crop for the 2026 growing season.

Since 2025, total production costs have more than doubled for several major row crops due to higher prices for seed, chemicals, repairs, labor, machinery and cash rents.

Soybean production costs are estimated to have risen 165%. Corn and wheat production costs are forecast 146 and 106% higher, respectively, while the cost to grow rice is estimated to have increased 103%.

Fertilizer prices have risen in recent years due to geopolitical issues, including the war in Ukraine, conflict in the Middle East and China restricting their exports.

Countervailing duties on fertilizer imports, as well as decreases in fertilizer production by major manufacturers, are also impacting prices.

“Chairman Ferguson said what every farmer in that room already knew—this nation cannot continue to ignore what’s happening in the fertilizer market,” Aaron Martinka, chairman of Texas Corn Producers, said. “A fertilizer cartel has squeezed American agriculture to the breaking point, while driving up grocery costs for every family in this country. Farmers are fed up, and we are not going away. The FTC’s investigation is a critical step toward restoring the fair, competitive marketplace that farm families and American consumers deserve.”

Per TCPA, fertilizer prices rose more than 150% since 2020, while net farm income fell 31% from its peak in 2022.

Urea prices rose 55% since shipping through the Strait of Hormuz was blocked, while nitrogen fertilizer rose 33%.

AFBF reported in an April survey that many farmers could not afford all the fertilizer needed this season.

Ferguson said the agency is using civil investigative demands to gather documents and testimony.

The FTC has added a confidentiality commitment on its website, and Ferguson is encouraging those with information that would be helpful in its investigation to come forward.