The U.S. Federal Trade Commission announced on Thursday (28) that it is investigating the sharp rise in fertilizer prices in the U.S. market, a movement intensified after the escalation of tensions in the Middle East. According to FTC Chairman Andrew Ferguson, the investigation seeks to determine the causes of the increased prices of inputs, which have directly impacted agricultural production costs in the U.S. “For some time now, the commission has been conducting a major industry-wide investigation into the soaring fertilizer prices in this country, which has affected many farmers in our nation,” Ferguson said during an event with rural producers in the state of Texas. The escalation of fertilizer and fuel prices gained momentum after the worsening of the conflict involving the U.S., Israel and Iran, which caused logistical disruptions and increased production costs in various agricultural chains. The scenario has been particularly challenging for corn and other crop producers in the U.S. Plains, who are also facing drought conditions and increasingly tight profit margins. According to testimony presented by the Kentucky Farm Federation to the U.S. Senate Agriculture Committee, urea prices—one of the main nitrogen fertilizers produced in the Gulf region—have increased by 55% since the closure of the Strait of Hormuz at the end of February. A survey conducted by American Farm Bureau Federation The report indicated that most American farmers were unable to purchase the full volume of fertilizer needed for the current crop season due to rising costs. The FTC reported that the investigation includes the use of civil subpoenas to obtain documents, data, and testimony from companies in the sector, with the goal of identifying possible practices that contributed to the price surge.
This text was translated by machine from Brazilian Portuguese.