US to Scrutinize Farm Input Suppliers on Surge in Costs
USDA, Justice Department to Examine 'Antitrust Enforcement' to Promote 'Free Market Competition'
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Agriculture Secretary Brooke Rollins said the U.S. will investigate suppliers of crop inputs 鈥 such as seeds and fertilizers 鈥 for potential antitrust violations, sending share prices plunging.
The agriculture and justice departments have signed a memorandum of understanding to 鈥渢ake a hard look and scrutinize competitive conditions in the agriculture marketplace, including antitrust enforcement that promotes free market competition,鈥 Rollins said Sept. 25 during a conference in Missouri.
Shares of North American fertilizer producers Nutrien and CF Industries Holdings slumped more than 3%, while Mosaic Co. fell as much as 4.8% before paring those declines. Corteva Inc., which supplies genetically modified seeds and pesticides, plunged as much as 5.3%.
Nutrien ranks No. 11 on the Transport Topics Top 100 list of the largest private carriers in North America and No. 2 among agriculture and food processors.
RELATED: Trump Says Tariff Revenue Will Fund Relief for Farmers
The costs of key inputs like fertilizers and tractors have been on the rise this year, partly because of President Donald Trump鈥檚 tariffs. That has squeezed farmers at a time when they are also dealing with low crop prices and China鈥檚 shift away from American soybeans.
Rollins also cited concerns about 鈥渦ndue foreign influence鈥 on the market, 鈥渆specially given a significant portion of our fertilizer production is overseas.鈥
The agriculture sector, which is highly concentrated, has drawn increased scrutiny over the past few years. Seed, fertilizer and equipment producers had already been targeted by the Biden administration鈥檚 2021 initiative to strengthen competition 鈥 a push that was revoked by Trump last month.
Last year, Biden announced a $500 million plan to boost domestic fertilizer supply and ease cost pressures on farmers.
A 2023 study by the USDA found that two companies supplied almost 72% of the corn seeds cultivated by U.S. farmers.
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