US Set to Use Tariff Funds to Address High Fertilizer Prices

Agri-Pulse’s Kim Chipman reported that “the Trump administration is poised to dip into tens of billions of dollars from tariffs and trade deal renegotiations to strengthen domestic fertilizer supplies, Agriculture Secretary Brooke Rollins told lawmakers.”

“‘We’ve got to invest in more infrastructure,’ Rollins said during a House Appropriations subcommittee budget hearing on Thursday. ‘We’ve got to reshore fertilizer back to America,'” Chipman reported. “Rollins said she hosted a 90-minute meeting on Wednesday with executives of four top fertilizer companies and Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer and National Economic Council Director Kevin Hassett.”

“‘They flew in from all over the world to sit down with us and really talk this through,’ she said, adding that she’s hopeful the administration will be ready to announce a full plan next week,” Chipman reported. “‘We’re going to start deploying some of those [trade] resources to begin to build, and they won’t come online for 12 to 18 months, but we’ve got to start moving back in that direction,’ Rollins said in response to a question from Rep. Ashley Hinson, R-Iowa.”

FarmWeekNow’s Tammie Sloup reported that “Rollins projected fertilizer costs would go back down after the war ends, but the federal government is working with fertilizer companies in the meantime to help address cost challenges. She also pointed to the Trump administration’s 60-day waiver on enforcement of the Jones Act, which requires vessels transporting goods between U.S. ports to be U.S. built and owned, as well as allowing more Venezuelan fertilizer to be imported into the U.S.”

“She emphasized a handful of companies have ‘basically taken over the market in all of the inputs,’ resulting in a lack of competition,” Sloup reported. “‘That’s what we’ve got to really solve for,’ she said, adding she and other cabinet members met Wednesday at USDA with four top fertilizer companies. Rollins added she’s on the phone daily with other fertilizer companies from around the country.”

“‘USDA has identified some funding to begin investing, to move some more fertilizer out more quickly. So we are on it, but I don’t want to over promise. These prices will not come down anytime in the next couple of days or weeks. It may take us a couple months to get them back down, but we’re working on it,’ she said,” according to Sloup’s reporting.

Vaden Says USDA Shifting from Concern to Specific Accountability

AgWeb’s Tyne Morgan reported that “as discussions continue with fertilizer companies, (USDA Deputy Secretary Stephen) Vaden says USDA is shifting the conversation from general concern to specific accountability. Rather than broad discussions about market conditions, he says officials are now asking companies to identify concrete projects that could increase supply and to explain why those investments have not yet materialized.”

“This approach, he says, reflects a broader strategy inside the department to move beyond analysis and toward action, particularly in areas where supply constraints have persisted for years without meaningful change,” Morgan reported. “In meetings held both jointly and separately with industry leaders, Vaden says USDA has been consistent in its message to fertilizer companies.”

“We are saying the same thing to everyone who comes before the department,’ Vaden says,” according to Morgan’s reporting. “‘Be a part of the solution, don’t be a part of the problem.'”

“He says that includes detailed questions about whether expansion projects are already in development but stalled due to permitting delays, regulatory barriers or capital constraints. In some cases, he says, USDA is asking companies to identify where federal or state action could realistically speed up timelines,” Morgan reported. “…’We’re asking as many questions as we are making declarative statements, and we’re trying to see what levers we can pull to get more supply on the market,’ Vaden says.”

70% of Farmers Can’t Afford All Needed Fertilizer, Survey Shows

A new survey from the American Farm Bureau Federation shows that the vast majority of U.S. farmers — roughly 70% — are unable to afford all of the fertilizer they need this season amid rising input costs due to the war in Iran and an already difficult farm economy. The survey was conducted from April 3 to April 11 and had more than 5,700 farmers respond.

The American Farm Bureau Federation’s Faith Parum reported that “farmers in the Southern region reported the greatest difficulty securing fertilizer, with 78% unable to afford all needed inputs this season. Producers in the Northeast and West also reported significant challenges, with 69% and 66%, respectively, unable to afford all required fertilizer, compared to 48% in the Midwest.”

“When producers cannot afford full fertilizer application rates, they may reduce nutrient use or shift acreage decisions, both of which increase the risk of lower yields and reduced production potential in the 2026 crop year,” Parum reported. “Affordability concerns are even more pronounced when viewed by commodity. More than 80% of rice, cotton and peanut producers reported they cannot afford all required fertilizer, highlighting the vulnerability of these production systems to input cost shocks. Over half of all commodities report not being able to afford all fertilizer needs this year.”