CCAC Joins NCGA, Other State Corn Organizations in Letter to Mosaic: Stop Engaging in Irresponsible Corporate Behavior and End Fertilizer Tariffs

One of the nation’s leading fertilizer companies has erected an insurmountable tariff barrier to keep its top competitors out of the U.S. market at the expense of America’s farmers, according to a letter released this week by the National Corn Growers Association and signed by CCAC Vice President Rod Hahn of Yuma, Colo.

Leaders from NCGA and its state affiliates signed the letter, which was sent to executives at Mosaic Co., one of the nation’s largest fertilizer producers. The letter takes Mosaic to task for the tariffs that were imposed in March by the U.S. International Trade Commission at the fertilizer company’s behest. Fertilizer prices have since skyrocketed.

“Mosaic’s posture to date has been a masterpiece of irresponsible corporate social responsibility,” the letter says.

The letter highlighted the stranglehold Mosaic has placed on its customers and suggested the company’s monopoly is creating serious problems for farmers.

“…only 15% of phosphorous imports now come into the U.S. without tariffs,” the letter notes. “And experts say that using Commerce and ITC to manipulate the supply curve does indeed dictate price to farmers.”

To illustrate their point, the signatories said estimates show that tariffs between 30% and 70% on phosphate imports would equate to roughly $480 to $640 million in added fertilizer bills on U.S. farmers.

“These tariffs are affecting Colorado corn producers in a very negative way and it’s time for it to stop. By removing these tariffs and increasing the imposts of this key nutrient, the supply should increase and the price should decrease.” said Hahn.

The corn producers said that now is a good time for Mosaic to reverse course.

“We ask that you voluntarily withdraw your countervailing duties and allow critical supply back into the U.S. at a time of inadequate supplies and soaring phosphate prices,” they said.

In recent months, NCGA and state corn producers have sounded the alarm about the effects fertilizer tariffs are having on farmers. NCGA, along with other ag groups, submitted an amicus brief in November in a case filed in the U.S. Court of International Trade seeking to overturn the tariffs. A ruling in that case is not expected any earlier than summer of 2022.

You can view the letter sent to Mosaic here.