The Trump administration is helping farmers manage rising input costs by allowing for duty-free imports of Moroccan fertilizers on a temporary basis, amid ongoing supply chain challenges linked to Middle East tensions.
On June 29, President Trump signed an executive order that suspended countervailing duties (CVDs) on Moroccan phosphate fertilizers for up to the next eight months. The decision to lift the duties is to ensure agricultural food production remains stable amid supply chain disruptions, as the federal government works to expand domestic fertilizer production, the order stated.
Disruptions to the phosphate fertilizer market came from “conflicts in fertilizer-producing regions as well as trade actions taken by major fertilizer-producing countries,” and that “the United States’ largest foreign source of phosphate fertilizer has experienced supply chain disruption,” the order stated. However, the order did not call out the Iran war or concerns around the Strait of Hormuz by name.
The Department of Commerce and International Trade Commission issued CVDs on phosphate coming from Morocco and Russia, applicable on April 7, 2021. Initially, U.S. fertilizer supplier The Mosaic Company advocated for the CVDs under section 701 of the Tariff Act of 1930 and defended the tariffs amid the Iran war-induced market volatility, per media reporting.
Farm groups applaud fertilizer decision
Major farm groups like the American Farm Bureau Federation and the National Corn Growers Association applauded President Trump on the executive order, given the upcoming fall planning season. The Farm Bureau found that 70%, 68%, and 66% of wheat, soybean, and corn growers, respectively, could not afford all their needed fertilizers.
“The decision to suspend tariffs on critical supplies, along with the recent request for emergency economic aid for farmers, are common-sense steps that will bring relief to farmers at a time when they need it most. We shared the impact of high fertilizer prices and availability with the president, and we appreciate him listening to those concerns. We’ll continue to work with the administration to find more ways to improve market conditions and lower expenses for the men and women who work to ensure pantries are stocked for America’s families,” said Farm Bureau President Zippy Duvall in a statement.
National Corn Growers Association President and Ohio farmer Jed Bower struck a similar tone in a statement, applauding the Trump administration and noting that the move comes amid antitrust investigations and a sunset review of the CVDs.
“This is such welcome news for corn farmers. Fertilizer represents one of the biggest expenses for farms every year, only made worse in recent years by actions of companies looking to further consolidate their control of the market. Input prices generally have been incredibly high and are a major contributing factor to the profitability picture, or lack thereof, for corn farmers right now,” Bower said in a statement.
