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The Zipline: Fertilizer Supply Disruptions Threaten American Agriculture

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fertilizer

Zippy Duvall

President

photo credit: Zach Hunnicutt, Used with Permission

Zippy Duvall

President


Farmers are no strangers to uncertainty. Weather, markets and supply challenges can all influence what happens on the farm. In recent years, we’ve seen just how quickly events around the world can affect American agriculture.

Right now, farmers are watching disruptions to global shipping routes with growing concern about what it could mean for fertilizer supplies as we head into spring planting season.

Last week, I shared those concerns when I testified before the Senate Agriculture Committee. As I told lawmakers, fertilizer is one of the most essential inputs farmers rely on to produce the crops that feed our families and fuel our economy. When the fertilizer supply chain is threatened, it creates ripple effects that impact farms, grocery stores and kitchen tables across America.

That’s why Farm Bureau recently drew attention to this issue and called on the President to take proactive steps to protect the fertilizer supply chain and prevent disruptions that could impact farmers across the country.

Disruptions to the Fertilizer Supply Chain

The current concern centers on disruptions to shipping through the Strait of Hormuz, one of the world’s most important maritime corridors for energy and fertilizer products. Large volumes of products like urea, ammonia, phosphates and sulfur move through that region each year. In fact, nearly half of global urea exports and about 30% of global ammonia exports originate from countries in or near that region. When something interrupts that flow, it can send shockwaves through the fertilizer supply chain.

Farmers understand supply chains because we depend on them every day. When an input becomes harder to find or more expensive, those challenges move quickly from global markets all the way down to individual farms.

Maintaining a stable fertilizer supply chain is critical to ensuring farmers can continue producing the food, fuel and fiber American families depend on.

The Fertilizer Supply Matters at Planting Time

The timing of this issue makes it especially concerning. Across the country, farmers are preparing fields and making final plans for planting season. That means fertilizer decisions are being made today that will impact harvests months from now.

Farmers are already facing tight margins and declining commodity prices. A sudden spike in fertilizer costs or disruption in availability could put even more strain on farm families who are already underwater.

A disruption in fertilizer supplies will affect crop production, and reduced crop production does not just affect farmers. It threatens our food security and can contribute to higher food prices for families across America. A strong and stable food supply begins with a strong agriculture supply chain.

Protecting the Fertilizer Supply Chain

The recommendations outlined in our letter to the President focus on keeping fertilizer moving safely and efficiently. They include maintaining safe maritime transit for fertilizer shipments through key global shipping lanes and working with international partners to keep those routes open. We also highlighted the importance of ensuring vessels transporting fertilizer can obtain the insurance coverage necessary to operate in higher-risk regions.

At home, policymakers can help by ensuring fertilizer moves efficiently through our domestic transportation system. Rail, barge and trucking networks all play a role in making sure farmers receive the inputs they need when they need them.

Additional steps, such as easing certain trade restrictions or temporarily suspending duties on imported fertilizer products, could also help moderate price increases during a time of market disruption.

Keeping America’s Fertilizer Supply Strong

American farmers are resilient. We plan, adapt, and keep moving forward even when challenges arise. But maintaining a stable fertilizer supply chain is critical to ensuring farmers can continue producing the food, fuel and fiber American families depend on.

Protecting the fertilizer supply is about more than one planting season. It’s about making sure American agriculture remains strong, resilient, and ready to meet the needs of families here at home and around the world.