Josh Linville with StoneX Group says it’s unclear how the Trump administration’s push to expand domestic fertilizer production helps lower prices and improves availability for U.S. farmers.
“We appreciate all the things that are going on,” he says. “I just don’t think it’s enough steps in the right direction. I don’t think it’s quite enough of a step forward to get us where we need to be.”
Linville says the administration could invest in more projects that produce the fertilizer products needed in the United States. He says the current projects being referenced focus on producing anhydrous ammonia outside the Midwest or for international markets.
“One of the things they pointed to was a new anhydrous facility in Washington. When you look and see how much anhydrous is used in that part of the world, you kind of scratch your head. The plant in Louisiana, that’s another one. It’s going to be a major facility. But then, when you really dig into the details, you start to find out the strategy for that plant is not for U.S. farmers, it’s international.”
He says more anhydrous production is positive, but other products are needed, too.
“These plants that they’re talking about, they’re focused only on anhydrous. They need to take the next step and say there will also be an upgrade facility that will take that anhydrous and use it to produce things like UAN and urea.”
Linville tells Brownfield one of the biggest questions remains unasked.
“Are we asking the right people? If they really want to get to the nuts and bolts of it, you need to spend more time talking to the farmer. You need to spend more time talking to the retailer who not only touches the manufacturer and the distribution, but is also talking to the farmer and dealing with some of the things that they’re going through.”
He says fertilizer markets are complex, and finding solutions that address the high prices facing farmers aren’t easy.
A USDA spokesperson tells Brownfield the Trump administration has been laser focused on the issue, and is determined to take the necessary steps now to provide more affordable fertilizer for this and future planting seasons.
Linville says nitrogen fertilizer prices have come down from their highs, but remain elevated. He says phosphate prices continue to increase.
The Strait of Hormuz has been closed for nearly three months, and there have been few to no signs of the strait reopening in the near-term.
