Fertilizer and Seed Competition: A Pressure Cooker Moment for U.S. Agriculture
The Impetus for the Hearing
On October 28, the Senate Judiciary Committee convened a hearing titled “Pressure Cooker: Competition Issues in the Seed and Fertilizer Industries.” The session, led by Senator Chuck Grassley (R-IA), spotlighted one of the most pressing challenges facing American agriculture: rising input costs and limited competition. Farmers, Grassley noted, are operating on razor-thin margins, often with little real choice in where they purchase seed and fertilizer.
The hearing aimed to unpack the forces behind price inflation, market consolidation, and supply chain vulnerabilities that threaten both rural livelihoods and national food security. Lawmakers on both sides of the aisle emphasized the need for transparency, accountability, and a fair marketplace that keeps farmers in business.
The Witnesses: Perspectives from the Ground and the Industry
The panel of witnesses reflected the diversity of the agriculture sector—from independent farmers to industry leaders and policy experts:
Noah Coppess, Iowa farmer, described the historic consolidation of seed and fertilizer markets and how limited competition has reduced transparency and bargaining power for producers.
John Latham, President of Latham Quality Seeds, shared the perspective of an independent seed company competing against industry giants controlling 90% of the corn seed market. He called for fair-licensing rules and stronger antitrust enforcement to protect seed diversity and innovation.
Caleb Ragland, President of the American Soybean Association, outlined the financial strain on farmers as input costs have risen 30–40% while net farm income has fallen by more than half since 2022.
Corey Rosenbusch, CEO of The Fertilizer Institute, emphasized the fertilizer industry’s essential role in global food security and urged investment in domestic production capacity and regulatory streamlining.
Andrew LaVigne, President of the American Seed Trade Association, called for modernized, science-based regulations to help small seed firms innovate and compete globally.
Diana Moss, Vice President at the Progressive Policy Institute, provided a policy lens, warning that consolidation has stifled innovation, inflated prices, and reduced market resilience.
Key Themes from Lawmakers’ Questions
The Q&A session revealed distinct but overlapping concerns across party lines:
Republican senators focused on input costs and national security. Grassley and Senator Katie Britt (R-AL) pressed industry leaders about how to ensure domestic fertilizer production and protect supply chains from foreign dependence. Senator Mike Lee (R-UT) raised questions about restrictive rebate programs and patent extensions that limit small competitors, while Florida’s Ashley Moody framed phosphate production as a national security issue.
Democratic senators emphasized trade and research barriers. Senator Dick Durbin (D-IL) questioned the erosion of public agricultural research capacity and urged stronger federal enforcement against anti-competitive mergers. Senator Cory Booker (D-NJ) framed the issue as part of a broader “farm crisis,” calling for structural reform and public-interest research. Senator Amy Klobuchar (D-MN) highlighted how tariffs and input volatility have created a “perfect storm” for farmers already facing labor shortages and supply-chain stress.
Across the aisle, there was rare agreement: farmers need more transparency, fair competition, and practical reforms that strengthen—not weaken—American agriculture.
Legislative and Administrative Actions
Several ongoing policy efforts surfaced as potential solutions:
The Fertilizer Research Act, introduced earlier this year, would direct USDA to study causes of high fertilizer prices and recommend strategies to stabilize markets.
USDA and DOJ Joint Task Force: Both agencies are collaborating to investigate potential price manipulation and anti-competitive behavior in agricultural input markets. Lawmakers on both sides praised the effort as a balanced, “limited-government” way to ensure accountability.
Trade and Tariff Policy: Multiple senators—particularly Grassley—urged the administration to reconsider duties on Moroccan phosphates, which they argue have artificially inflated U.S. fertilizer prices.
These actions suggest a growing bipartisan appetite for addressing structural issues in agricultural markets—moving beyond one-time relief payments toward longer-term reforms that promote fair competition and resilient supply chains.
Closing Reflection
This hearing underscored what many in agriculture already feel: the system is under strain. Farmers face rising costs, limited options, and an increasingly complex global market. Yet, amid this “pressure cooker,” there is opportunity. Leaders across sectors—producers, policymakers, and industry voices alike—are calling for greater transparency, collaboration, and innovation.
At RKO Consulting Group, we see this moment as an inflection point for sustainable agriculture. When farmers feel pushed into a corner, it can be hard to take a chance on new practices that might not have immediate financial benefits.
If you’d like to see detailed hearing notes, please fill out this form. You can watch the full hearing and read the witness testimonies on the Senate Judiciary Committee’s website.