ISU investigates whether fertilizer companies are manipulating prices –


Ames, Iowa – A study from Iowa State University finds there isn’t enough evidence to show that fertilizer companies are taking advantage of inflation to raise prices.

The study was commissioned by Iowa Attorney General Tom Miller earlier this year due to soaring fertilizer prices. UIS agricultural economist Chad Hart, one of the study’s authors, says several factors have caused fertilizer prices to rise, including supply chain issues, market fluctuations in energy and Russia’s invasion of Ukraine.

The price of ammonia has increased by 126% compared to a year ago. Farmers use nitrogen, phosphate and potassium fertilizers to promote the growth of their plants. Hart says there’s been a “perfect storm” of factors, but there’s not enough evidence to say whether fertilizer companies are using their market power to drive up prices.

UIS study predicts fertilizer prices will decline in the second half of this year, but will not return to where they were in mid-2020 as farmer demand is high and supply chain issues exist still.

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