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USDA Weighs Biden-Era Fertilizer Program as Hormuz Disruption Drives Prices Higher

USDA says a formal plan to ease fertilizer costs is coming soon.

Overview

  • Pressed on Fox Business Thursday, Agriculture Secretary Brooke Rollins faced repeated questions about a concrete plan to cut soaring fertilizer costs during planting season.
  • Rollins said she has daily talks with the White House and fertilizer CEOs and cited short-term steps that include temporary Jones Act relief, new import routes such as from Venezuela, faster permits, and an EPA move easing diesel exhaust rules tied to urea.
  • She said USDA will announce short- and long-term actions soon and confirmed she is considering reviving the Biden-era Fertilizer Production Expansion Program to boost domestic supply.
  • Prices have jumped as Iran’s actions in the Strait of Hormuz restrict shipments of key inputs like urea and ammonia, with DTN data showing urea up 27% in April compared with March.
  • A recent Farm Bureau survey found many growers cannot afford all they need this year, especially in the South, while policy analysts highlight 2021 phosphate tariffs that research links to a roughly 29% jump in DAP costs for U.S. farmers.