News Type: Press Releases

TFI Welcomes USDA Investment in Fertilizer Production

ARLINGTON, VA – The Fertilizer Institute (TFI) today praised the U.S. Department of Agriculture (USDA) announcement of $500 million in grant funding available through the Fertilizer Production Expansion Program for domestic fertilizer production.

“The U.S. has one of the strongest and most competitive fertilizer industries in the world, being one of only three nations that has at least 20 unique companies producing fertilizer products,” said TFI President and CEO Corey Rosenbusch. “The U.S. fertilizer industry consists of large international corporations, small regional producers, and everything in between. They all play a critical role in suppling farmers with the nutrients required to grow the food that feeds the world. While a nitrogen plant can cost between $2-$4 billion to construct, anything that helps strengthen domestic fertilizer production is a win for the industry, growers, and consumers.”

According to information released by the USDA, grants will be used to support innovative and sustainable fertilizer production in the U.S. and its territories.

“Innovative and sustainable are key requirements for the grant funding and they describe the industry well,” Rosenbusch continued. “Innovation has been a hallmark of fertilizer producers as enhanced efficiency fertilizers (EEFs) and other new technologies play a big role in our ability to feed a growing population.”

Sustainability is also a key focus of the industry and is supported by the 4R Nutrient Stewardship program, which focuses on the right fertilizer source, at the right place, at the right rate, and at the right time.

“A year ago on Global Fertilizer Day, TFI announced our commitment to having 70 million acres of farmland under 4R nutrient stewardship by 2030,” Rosenbusch continued. “4R practices are proven ways of achieving higher yields, lower input costs, and less nutrient losses to the environment. All that in addition to industry efforts to maximize production efficiency by utilizing waste heat and carbon capture technologies.”

TFI also recently began accepting nominations for 2023 4R Advocates, a program that recognizes farmers and fertilizer retailers for their commitment to sound nutrient stewardship through 4R practices.

“The world’s growing population depends on responsible agricultural practices to provide a steady supply of food,” Rosenbusch concluded. “Modern fertilizer techniques, such as 4R Nutrient Stewardship, precision agriculture, and enhanced efficiency fertilizers, are an essential part of this sustainable future, and TFI applauds the USDA investment in strengthening domestic fertilizer production capabilities, innovation, technology, and the responsible use of fertilizer by growers.” 

 

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TFI Commends Deal Between Rail Carriers and Unions

Arlington, VA – The Fertilizer Institute (TFI) today commended the tentative deal reached between rail carriers and labor unions that has averted a strike that had the potential to devastate an economy already struggling with inflation.

“Averting a strike Friday morning was priority number one,” TFI President & CEO Corey Rosenbusch said. “We appreciate the hard work both sides put into reaching a tentative agreement that will in turn allow our industry to produce and move the fertilizers our farmers rely on to feed the world. The fertilizer industry also appreciates the focused attention of President Biden, Secretary Walsh, and the Administration to reach a resolution in a challenging situation.”

The tentative agreement still needs to be ratified by respective unions through a vote by rank-and-file rail workers. Ammonia shipments must also quickly resume as they have been embargoed since Monday. According to information from producers, most or all the ammonia embargoes have been lifted as of this morning.

“We are hopeful that union membership will vote to approve the tentative agreement to ensure freight rail in the U.S. continues to operate,” Rosenbusch concluded. “As we move forward, it is also essential that rail carriers hire and retain the appropriate employee staffing levels to support a strong economy. Staff reductions in recent years have dramatically hurt rail service and made the rail-labor contract negotiations more challenging.”

 

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TFI: America Can’t Afford a Rail Strike, Congress Must Act

Arlington, VA – The Fertilizer Institute (TFI) today continued urging agreement between rail carriers and labor groups to avoid an economically catastrophic rail strike and again asks Congress to intervene.

“Nine out of the twelve labor unions have come to tentative agreements with the rail carriers, which is great news, but we are getting down to the wire,” TFI President and CEO Corey Rosenbusch said. “Tomorrow is the last day Congress has to step in and avoid what would be an absolutely devastating strike that farmers and consumers cannot afford.”

The production and movement of fertilizer is heavily dependent on rail, both for finished product and production inputs. Many of those products have already been removed from the rails in preparation for a potential rail stoppage.

“For every day this uncertainty continues, we essentially lose five shipping days because of the ramp down and ramp up,” continued Rosenbusch. “If this situation is not resolved by tomorrow, it could quickly impact supplies for fall application and lead to a reduction in U.S. production at a time when 70% of European production has been curtailed or ceased due to Russia’s shutoff of natural gas supplies.”

Congress has the power to step in and avert a rail strike if agreements between the rail carriers and labor unions are not reached.

“Congress can act to implement the President’s Emergency Board compromise agreement,” Rosenbusch concluded. “Action must be taken to ensure rail networks continue operating or American consumers and global food security will pay for it.”

 

 

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TFI Urges Agreement or Congressional Action to Avoid Rail Shutdown

Arlington, VA – The Fertilizer Institute (TFI) today again urged Congress to take action to avoid a freight rail shutdown on September 16th. TFI sent a letter to Congressional leaders on Sept. 7th pushing for intervention to prevent a stoppage from occurring.

“A stoppage hasn’t yet happened, but we are already feeling the negative effects of non-resolution,” TFI President and CEO Corey Rosenbusch said. “Rail networks are complicated, and carriers must make preparations ahead of a potential stoppage to keep certain types of cargo safe and secure. Fertilizer falls into that category and is being taken off the rails. That is bad news for farmers and food security.”

Rail carriers announced Friday evening that shipments of fertilizer products, such as ammonia – a key fertilizer and building block for approximately three-fourths of all fertilizer – will start coming off rail networks as early as this Monday.

“Supply chains are already strained and there is currently zero elasticity in rail transportation,” Rosenbusch continued. “This situation will get exponentially worse every day there is no resolution. Over half of all fertilizer moves by rail year-round, and there are some fertilizer products that move almost exclusively by rail. If they can’t be shipped farmers won’t have them and if they can’t move production slows down. In the end the consumer will be footing the bill for this inaction at a time when household budgets are already strained.”

“TFI would like to see an agreement between the rail carriers and labor unions,” concluded Rosenbusch. “But if they cannot reach an agreement, Congress must act to avoid an economic catastrophe that will only add to inflation and increase consumer pain.”

 

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TFI Urges Congressional Action to Avert Nationwide Rail Stoppage

Arlington, VA – The Fertilizer Institute (TFI) yesterday sent a letter to Congressional leadership urging congressional action to prevent a Sept. 16th shutdown of freight rail operations in the United States. The potential shutdown comes as rail carriers and labor unions continue negotiations on a contract agreement.

“A disruption to freight rail operations would be catastrophic,” said TFI President and CEO Corey Rosenbusch. “Over half of all fertilizer moves by rail year-round throughout the United States and the timeliness and reliability of fertilizer shipments is absolutely critical. If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers.”

The letter sent by TFI urges Congress to begin preparations to implement the Presidential Emergency Board (PEB) recommendations that fall in the middle of the carriers’ and unions’ contract proposals to avert a total stoppage.

“A speedy resolution is paramount,” concluded Rosenbusch. “With less than two weeks to go, carriers and shippers have already begun contingency planning and if no agreement is reached soon rail shipments will have to wind down days before Sept. 16 to allow carriers to carefully clear their networks. Fertilizer shippers and their farmer customers want carriers and their unions to reach a compromise, and if necessary, Congress needs to act to prevent a devastating halt to our nation’s supply chain.”

 

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TFI Urges Speedy Rail-Labor Union Contract Settlement

Arlington, VA – The Fertilizer Institute (TFI) today thanked members of the Presidential Emergency Board (PEB) for hearing from both rail carriers and their labor unions and providing measured recommendations on a pending contract agreement between the two. TFI urges all parties to swiftly reach a compromise and contract agreement. Both sides have until Sept. 16 to evaluate the PEB’s recommendations during a mandated 30-day cooling-off period.

“Uncertainty of this nature is yet another disruption in an already complex environment for farmers, so speedy resolution is paramount,” said TFI President and CEO Corey Rosenbusch. “Over half of all fertilizer moves by rail year-round throughout the United States and the timeliness and reliability of fertilizer shipments is absolutely critical. If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers.”

 

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Ag Retail Leader and Sustainability Advocates Headline InfoAg Conference in St. Louis

Arlington, VA – InfoAg, the leading conference and expo in precision agriculture since 1995 for the agriculture retail community, will this year be headlined with a keynote from GreenPoint Ag President and CEO Jeff Blair and a robust panel discussion on sustainability and stewardship with growers Tom Connors and David Myerholtz moderated by AGI Farmobile Vice President of Data Services Steve Cubbage.

“We are extremely excited to have Jeff Blair as our keynote speaker at this year’s InfoAg Conference in St. Louis,” said The Fertilizer Institute (TFI) President & CEO Corey Rosenbusch, whose organization holds the event. “Jeff is well-known and well-respected among his industry peers. Jeff is passionate in elevating the agriculture industry while driving the development of GreenPoint through steadfast customer engagement, performance improvement and operational excellence.”

During his keynote, Jeff will share his vision for the future of agriculture and ag retail, including the value of advancing sustainability, crop science innovations in soil sampling, variable-rate fertilizer application, effectively applied crop protection products, and empowering farmers and growers.

The following day’s general session luncheon, titled Profitable Practices, Sustainable Solutions and sponsored by AGI Farmobile, will key in on real-life examples of how sustainability and profitability can go hand-in-hand and provide attendees insight into the tools and innovations utilized by a set of growers and how they achieved maximum efficiency and profitability while being environmentally sustainable, including 4R Nutrient Stewardship practices.

“The credibility of the industry’s collective work around 4R, sustainability, regenerative ag, and carbon programs hinge on the integrity of the data used to document practices and measure progress so participants can be rewarded for their efforts,” says Bradford Warner, AGI vice president of sustainability for Farmobile. “That is AGI’s focus. We seek to help ag retailers and their growers capture, maintain and control high-quality, standardized data sets to foster these new markets and benefit their own operations.” During the event, AGI will roll-out a new100k-acre pilot collaboration with TFI and ag retailers to advance the use of the 4R calculator.

“The world’s population is set to reach 8 billion people by this November and 10 billion people by 2050,” Rosenbusch elaborated. “So how is the agriculture industry positioning itself to feed this future? How can we increase land use efficiency while protecting the farmer’s bottom line? These are the questions we are helping to answer through InfoAg and dynamic speakers like Jeff, Tom, David and Steve.”

The InfoAg Conference and Expo addresses the challenges of the ag retail agronomist through the lens of precision ag, environmental stewardship, sustainability, and product innovation. The conference features opportunities for crop consultants, agronomists, and other agricultural retail employees to learn more about innovative practices and new products and technologies that can be put into action with their grower customers. The conference also offers unique opportunities to share information and stories among industry peers.

“The information obtained through education sessions and on-site networking is extremely valuable to advancing shared goals of sustainability,” concluded Rosenbusch. “The final piece to this is the tradeshow aspect of the conference, where you can hear firsthand about the products, practices, and services being talked about among farmers across the country.”

InfoAg is being held in St. Louis, MO on July 26 and 27. Information about the conference and registration can be found by clicking here.

 

About GreenPoint Ag:

Headquartered in Decatur, Alabama, GreenPoint is one of the leading retail agronomy providers in the southern United States with a team of more than 1,000 employees across 10 states. To learn more, click here.

 

About AGI (Ag Growth International Inc.):

AGI is a provider of the physical equipment and digital technology solutions required to support global food infrastructure including grain, fertilizer, seed, feed, and food processing systems. AGI’s digital division includes leading data-driven brands that build value from field to bin, including Farmobile, BinManager, SureTrack, and CMC. AGI’s Farmobile data technology is a leader in auto-collecting and standardizing complex agronomic and machine data sets from a mixed fleet of equipment so it can be easily viewed, shared and streamed into other software systems. A To learn more, click here.

 

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

Iowa State University Study Can’t Refute that Increased Production Costs and Commensurate Supply Chain Issues Drove Increase in Fertilizer Prices

Fertilizer prices increased to 10-year highs over 2021 and 2022, leading growers, policymakers and others in the agriculture industry to look for the reason why. Those in the fertilizer industry who experienced the back-to-back-to-back events first-hand that drove prices up over the course of those 24 months are keenly aware of the reasons why, but many outside the industry latched onto something more nefarious: market consolidation and greed.

A recently released report undertaken by the Center for Agriculture and Rural Development (CARD) at Iowa State University (ISU) at the request of Iowa Attorney General Miller came to the primary conclusion that they did not have enough evidence to refute that “increased production costs and commensurate supply chain issues were the main cause of increased fertilizer prices in 2021/2022.”

This finding was not news to TFI. In fact, TFI has been spending a good chunk of these last two years educating commodity groups, farmer organizations, and policymakers about the myriad issues impacting fertilizer markets and influencing fertilizer prices. You know, things such as the COVID-19 pandemic, supply chain disruptions, increased energy costs, hurricanes, deep freezes, geopolitical unrest, political sanctions, and the Russia-Ukraine war.

Beyond the study’s primary conclusion, TFI has examined the report and provided additional key takeaway points and provided them below.

  • The study acknowledges and articulates well a variety of factors influencing fertilizer prices and markets. While there is always an ability to add more detail and background, the study provides a more holistic view of the market than the Texas A&M white paper that only focused on the change in domestic natural gas price. The ISU study could have made a stronger connection between global energy and fertilizer markets and the domestic fertilizer market.
  • A trend analysis of the price relationship between ammonia, granular urea, Henry Hub natural gas, international natural gas and corn price showed that “[A]nalyses imply fertilizer prices are likely to rely more on input costs than output prices most of the time. In recent years, anhydrous ammonia prices have depended on international natural gas prices, while urea prices relied more on domestic natural gas prices.” Several statistical and economic methods were utilized to arrive at these conclusions.
  • The authors provide a robust conversation on market power and economic profit, explaining “that while economists agree concentration is a necessary condition for market power, they have for decades now mostly abandoned the assertion that concentration is sufficient for market power.” This statement means that looking only at the correlation between the level of concentration or number of firms and the reported profits of an industry to determine market power and influence has been abandoned for other more robust techniques.
  • The media often discusses the fertilizer industries profits, stock prices and returns as evidence of market power. Economists have always been wary of looking at these metrics as these measures are not identical to the economic profits economists seek when measuring market power.
    • “The fertilizer industry’s average net income return over the past few years is high but comparable to other large industries, especially when taken over a longer run as fertilizer companies had low (sometimes negative) profits prior to 2020. The fertilizer industry’s average stock price return is also comparable to that of other firms in other large industries and comparable with a large portfolio of other firms and seems to be commensurate with its relative risk. A similar comparison to Iowa farm incomes and land value returns shows that the fertilizer returns actually lag those slightly.”
    • “Stock prices, especially, reflect what investors think the potential for earnings are, and stock price returns for these companies before and during the pandemic should reflect investors’ broader market perceptions of each firm’s risk and return. The takeaway from examining stock price returns is that the fertilizer industry is similar to the broader market from an investment return perspective.”

Upon publication of the study, Iowa Attorney General Miller in a news release thanked ISU for studying the fertilizer market and prices and for publishing the report. He also promised his office would continue monitoring the situation.

TFI is appreciative of economist at ISU for completing this in-depth study that highlights both current market supply and demand factors and their influence on markets, as well as their explanation of key economic principles related to common questions about the industry. While the study does leave several questions unanswered, the study provides the best analysis data will allow to date.

TFI welcomes any member feedback or perspective on conclusions of the study and ask that you please send those comments to TFI Director of Market Intelligence Jason Troendle at [email protected] or (202) 515-2710.

 

TFI Lauds Congressional Leadership on Rail Service Issues

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today praised the bipartisan leadership of Congressmen Ralph Norman (R-SC-5) and Jim Costa (D-CA-16) for organizing a letter to the Surface Transportation Board (STB) regarding poor rail service and the negative impact it is having on the fertilizer industry and the overall agricultural sector.

“With over half of all fertilizer moving by rail, we are grateful for the leadership of Congressmen Norman and Costa in bringing the issue of inconsistent rail service to the attention of the STB,” Rosenbusch said. “Their dedication to working with all stakeholders will help ensure that essential crop nutrient inputs reach farmers when and where they need them.”

Fertilizer shipments rely heavily on rail to reach farmers, but imposed restrictions, along with skeleton crews and railroad-led initiatives such as precision-scheduled railroading (PSR), have forced fertilizer shipping reductions and potential production delays.

“Fertilizer is attributable to half of all crop yields,” Rosenbusch continued. “With the world leaning on U.S. farmers now more than ever before to feed our growing population, we must ensure strong yields and our food security. Fertilizer must reach farmers in a timely manner and crop harvests also need to get to their destinations, including the kitchen table.”

The Congressional letter to the STB was signed by 51 members of Congress and can be read in full here.

 

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TFI Applauds Additional Investment in Domestic Fertilizer Grants; Urges Improvements to Nutrient Management Programs

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today welcomed the announcement from President Joe Biden that the United States Department of Agriculture (USDA) will be doubling its initial $250 million investment in domestic fertilizer production to $500 million.

“The importance of fertilizer in food production and national security is taking center stage. Fertilizer increases crop yields that can be attributed to feeding 50% of the global population,” Rosenbusch said. “TFI supports efforts to bolster fertilizer supply through domestic production and technology; and we also urge policy makers to remove the regulatory burdens that inhibit growth of existing fertilizer production.”

Rosenbusch added that the United States has one of the most robust and competitive fertilizer industries in the world and is one of only three countries to have at least twenty unique fertilizer producers.

“We look forward to working with the USDA on how to most efficiently leverage those funds in a way that positively impacts farmers who rely on fertilizers to feed the crops that feed the world.”

President Biden, speaking to local growers at a farm in Kankakee, IL, also addressed the need to increase access to existing nutrient management tools, an issue that TFI has been supporting through its industry-wide 4R Nutrient Stewardship program and by seeking streamlining of USDA technical assistance programs.

“There are barriers to adoption that must be addressed,” Rosenbusch stressed. “The biggest thing the administration can do is to allow Certified Crop Advisors (CCAs) to be recognized as Technical Service Providers (TSP) which would allow them to write nutrient management plans known as 590 plans.”

Additional improvements include expanded eligibility for the 590 grant program, allowing agricultural retailers to be eligible for all Natural Resource Conservation Service (NRCS) grants and Regional Conservation Partnership Program (RCPP) funds, building a dedicated Environmental Quality Incentives Program (EQIP) initiative to support and encourage sustainable, climate smart nutrient stewardship practice adoption, and to increase the cost-share rate within NRCS programs to 75%.

“Food security is national security,” concluded Rosenbusch. “We thank President Biden for his focus on these critical issues and we will continue working with the Administration to ensure U.S. farmers receive this necessary input and have the tools they need to promote the efficient and sustainable use of fertilizer.”

TFI recently released a number of actions that policymakers can take to strengthening domestic fertilizer production and address supply chain vulnerabilities. That document can be found here.

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.