Iowa Capital Dispatch’s Cami Koons reported that “U.S. Department of Agriculture Deputy Secretary Stephen Vaden was in Iowa Friday, asking farmers from across the country to share their experiences dealing with consolidation and pricing issues in the fertilizer industry.”
“Vaden, who previously served as a judge on the U.S. Court of International Trade and as USDA’s general counsel, said the individual stories from farmers will help as the U.S. Federal Trade Commission investigates the industry for potential unfair pricing or anti-competitive practices,” Koons reported. “‘Anybody can explain away one thing, you might be able to explain away two or three things, but if we’ve got 100 such stories from farmers all across this country, it becomes very difficult for even sophisticated lawyers to explain away such a large and broad-based phenomenon,’ Vaden said.”
“Several farmers and folks trying to add additional fertilizer options to the market spoke on a panel Friday about their experiences,” Koons reported. “Linda Thrasher is the co-founder of Greenfield Nitrogen, a farmer-formed company attempting to build a regional-sized anhydrous ammonia manufacturing and storage facility in Iowa. Thrasher said the company has been working for 12 years to try and secure sufficient off-take agreements in order to open the 300,000-ton facility.”
“Thrasher said Friday the retailers and farmer cooperatives they have approached won’t make a deal with them, for fear of being ‘blackballed’ by the main companies they purchase from,” Koons reported. “‘They’re scared,’ Thrasher said. ‘I think the intimidation is very real.'”
“…Vaden said the USDA is trying to play ‘3D chess’ to address the issue of high fertilizer prices for farmers. He said the department also plans to bring in additional fertilizer supplies from other sources, like Venezuela,” Koons reported. “‘The reason why I am here with you today and am so interested in being here and listening to what you have to say, is we all know something hasn’t been right in the fertilizer market,’ Vaden said. ‘We all know that it’s not really a free market.'”
“The deputy secretary said he doesn’t know a specific date that a Justice Department case will be finalized, but said ‘it’s coming,’” Koons reported. “‘Events like this make it sooner that we will be able to pursue action, because when farmers come together and are willing to give us information … this is what all drives it toward the ultimate conclusion,’ Vaden said.“
Farm Bill Vote Expected Wednesday
The Senate Agriculture Committee will return to action on Wednesday for another vote on its currently stalled Farm Bill 2.0. The committee met last month to debate and vote on the bill, but the absence of Sen. Mitch McConnell caused it to be unable to advance. At that time, Senate Agriculture Chairman John Boozman (R-Ark.) recessed the committee instead of adjourning it so that another vote could be held without requiring more debate, Politico reported.
Now, with numerous outlets reporting Monday evening that McConnell returned to the U.S. Capitol and voted for the first time in nearly three months, there is an expectation that the Farm Bill will be able to pass out of the Agriculture Committee on Wednesday.
But even if the Ag Committee approves the bill on Wednesday, it faces an uncertain future in the full Senate. Politico reports that instead of full passage, there could be yet another extension of the current farm bill as the coalition that has sustained the important agriculture legislation for many years continues to fracture.
