By Jennifer Whitlock
Field Editor
As fertilizer prices soar, the U.S. Department of Commerce found Russia, Trinidad and Tobago have been “dumping” urea ammonium nitrate (UAN) in the U.S. at below-market prices.
The preliminary finding sets the stage for Commerce to begin collecting cash deposits from those countries until anti-dumping duties and a final ruling are issued this summer, likely sending the costs of nitrogen fertilizers, essential for most row crop farming, even higher.
Compounding the issue is an earlier preliminary ruling by the department last November that the three nations were also unfairly subsidizing UAN exports to the U.S., allowing Commerce to collect countervailing duties (CVD) on top of anti-dumping duties.
The federal agency found Russian UAN imports are being sold at less than fair market value at rates from 9.15% to as much as 127.19%, while Trinidadian and Tobagonian UAN imports are dumped at a rate of 63.08%.
In the November preliminary ruling, Commerce found Russian UAN imports are unfairly subsidized at rates from 9.66% to 9.84% and Trinidadian and Tobagonian imports are subsidized at a rate of 1.83%.
One of the United States’ largest farming groups, the National Corn Growers Association (NCGA), said they are “deeply disappointed” by Commerce’s latest ruling.
“Corn growers are already feeling the financial pressure from the high costs of nitrogen fertilizers, which will only increase once these tariffs are put in place,” NCGA President Chris Edgington said in a statement to Agri-Pulse. “The expected price hikes and fertilizer shortages the tariffs will create may cause farmers to change their planting rotations right before planting season.”
The group has also spoken out about the effect similar phosphate fertilizer tariffs are having on farmers.
But domestic fertilizer producers allege Russia, Trinidad and Tobago have greatly harmed their business with unfair UAN imports.
“Commerce’s affirmative preliminary antidumping and countervailing duty determinations not only address unfair trade practices that have harmed the U.S. UAN industry and its workers, but also help ensure that this vital product remains readily available to U.S. farmers from reliable domestic suppliers,” Tony Will, president and chief executive officer of CF Industries Holdings, said.