USDA’s Vaden Accuses Nutrien, Mosaic of Fertilizer Price Collusion

Editor’s Note: This article was updated at 10 a.m. to include a statement from John Deere.

Agri-Pulse’s Oliver Ward reported that “Deputy Agriculture Secretary Stephen Vaden (last week) accused Nutrien and Mosaic of working to ‘collude’ to limit U.S. fertilizer supply and control prices, suggesting that the administration could take future action to inject more competition into markets, if necessary.”

“‘This administration is going to do everything it can to ensure that farmers have the fertilizer [they] need, at a price that they can pay,’ Vaden said during a webinar hosted by the National Agricultural Law Center,” according to Ward’s reporting. “‘We’re not going to allow these two companies to do anything to undermine this.'”

“Canada’s Nutrien and Florida-based Mosaic were responsible for more than 90% of North American phosphate fertilizer and potash production in 2024, according to Farm Action – an ag industry accountability group. On the distribution side, Farm Action notes that just seven companies control 70% of crop input sales, including Nutrien Ag Solutions, the retail business of Nutrien,” Ward reported. “During the webinar on Wednesday, Vaden described Nutrien’s and Mosaic’s grip on the market as a ‘duopoly’ that is constraining ‘fertilizer supply in this country’ and driving ‘up the cost that farmers are paying.'”

“The deputy secretary said on Wednesday that he is closely watching a project to open a new fertilizer mine in Saskatchewan, Canada, that will eventually export to the U.S. and could ‘break up that duopoly’s control,'” Ward reported. “He didn’t specifically name the project, but the Australian mining company BHP has a venture worth more than $10 billion to open a potash mine in the region. The mine would be the 11th such mine in the province and could be operational by the middle of next year, according to a recent press release.”

“Vaden said that the Trump administration is on the lookout for signs that Nutrien or Mosaic could try to stifle the new competition,” Ward reported. “He pledged to protect ‘any other new market participant that wants to come in, provide new fertilizer supply, and break up the cute little game that Mosaic and Nutrien have been playing for the last several years.'”

Vaden Also Took Aim At Farm Equipment Repair

AgWeb’s Margy Eckelkamp reported that Vaden also shared his concerns over farm equipment repair during the webinar.

“‘This administration thinks farmers should be able to repair their own equipment, and the industry’s efforts to prevent them from doing so are illegal,’ he says,” according to Eckelkamp’s reporting. “‘That’s why this administration’s Federal Trade Commission is currently suing John Deere and some of the fellow equipment manufacturers to stand up for American farmers’ rights to repair their own equipment and to not to have to suffer under a system where, when their equipment breaks down in the field, they have to call a John Deere dealer, for example, and wait for them to send out someone to fix a simple issue that the farmer can repair him or herself — costing them time, productivity and money.'”

“He also says the administration is looking into how manufacturers distribute and sell their equipment. Specifically, the geography assignment and trade territories of dealers are being questioned in light of any price differences,” Eckelkamp reported. “‘If you should happen to pick any other dealer than the one they designate as your local dealer, they’ll charge you more for the same piece of equipment — the exact same piece equipment. There’s a financial penalty, which is prohibitive to you exercising choice over which dealer you use to buy your equipment — eliminating the ability to compete on the basis of price,’ Vaden says.”

“He adds the exclusive use of OEM parts at the dealership adds costs to farmers,” Eckelkamp reported. “‘So, all of these three things, when added together, limiting your choice of where you can buy, and then when you have purchased a piece of equipment, preventing you from repairing it, and preventing you from using anybody else’s other than their own parts, give them more pricing power and allow them to drive up the cost of not only purchasing the equipment, but of ownership and operating the equipment — all which goes directly to their bottom line,’ Vaden says.”

“John Deere provided Farm Journal with the following statement from Deanna Kovar, President, Worldwide Agriculture & Turf Division for Production & Precision Agriculture,” Eckelkamp reported. “‘For nearly 190 years, John Deere has been committed to providing best-in-class support for farmers and ranchers, and we know just how important our network of more than 1,600 Agriculture & Turf dealer locations supported by more than 50,000 dealer employees across the U.S. are to that commitment. Importantly, because dealer trade areas are not exclusive, our customers can choose to work with any John Deere Agriculture & Turf dealer in the U.S. and John Deere does not penalize customers or dealers for doing business outside of a dealer’s assigned area of responsibility.’

“‘At the same time, we wholeheartedly agree that farmers should be able to repair their own equipment, and that’s why John Deere offers an industry-leading self-repair tool like John Deere Operations Center PRO Service. Our approach is simple – whether you want to work with your trusted John Deere dealer, a local service provider, or do the work yourself, we empower you to choose how your equipment is maintained, diagnosed, and repaired. For more on our commitment, customers are encouraged to visit www.JohnDeere.com/RunItYourWay.'”