Some potentially favorable news for U.S. fertilizer producers came this week, when the Department of Commerce ruled that imported urea ammonium nitrate fertilizers were unfairly subsidized and dumped in the U.S. at below-market prices.
It’s not all good news. While working toward an even playing field for domestic and foreign fertilizers, adding additional tariffs will only worsen the woes, to the tune of more shortages and price hikes.
We don’t need to remind you that nitrogen fertilizer is already becoming so costly and scarce that rationing usage isn’t out of the question for some American farmers.
Soundbite: “Placing tariffs on nitrogen fertilizers will land yet another blow to farmers, who are already dealing with a host of challenges,” Brooke Appleton, vice president of public policy for the National Corn Growers Association. “Farmers can’t farm with one hand tied behind their backs, and these actions getting pushed by fertilizer companies will tie their hands.”
What’s next? The ITC and DOC were asked by CF Industries to apply countervailing duties on Russia and Trinidad and Tobago because they were distorting the market.
The U.S. International Trade Commission will make the final ruling in mid-July on if UAN imports from Russia and Trinidad and Tobago harm U.S. producers of the fertilizer.