There’s no question about it: Ohioans are getting hammered by inflation and rising costs – at the grocery store, the gas pump and just about anywhere they see a price tag. Working people need relief now, and it’s why I’ve relentlessly advocated for a middle-class tax cut that will help families shoulder this pain.
But long before Russia’s invasion of Ukraine and a global pandemic disrupted our supply chain and hiked food prices, America’s farmers were already facing rising costs due to one increasingly harmful trend: mergers and consolidation in the agricultural input industry.
While industry consolidation in the fertilizer market has been around for decades now, we’ve seen a rapid acceleration of mergers since 2016. Today, only four corporations control 75% of nitrogen fertilizer production, and just two companies are responsible for nearly all the potash supply in North America.
Fertilizer prices account for approximately 20% of all farm cash costs and account for an even greater share of the cost to produce corn and wheat — two of Ohio’s top agriculture commodities. Global fertilizer prices already broke records in 2021 before Russia’s invasion of Ukraine set into motion a series of rippling effects in the agriculture supply chain that slashed output and further drove up the price of fertilizer. Fertilizer production and costs are especially vulnerable to volatility in the energy market, and we are currently experiencing the exact global environment in which American farmers can least afford an uncompetitive input marketplace.
Our farmers rely on precise planning and budgeting to hit certain production amounts and price targets. With the skyrocketing price of nitrogen and potash, farmers in Ohio will be left with a potentially costlier 2023, following a year where they already paid four to five times more for fertilizer than the year prior.
We cannot continue to let corporate greed and anti-competition practices dictate the price of these inputs while forcing our hardworking farmers to bear the burden.
That’s why I am a proud cosponsor of the Food and Agribusiness Merger Moratorium and Antitrust Review Act. This bill would create a commission chosen jointly by Republican and Democratic leadership to study the ramifications of market concentration in the agriculture economy and make recommendations on steps Congress should take to change antitrust laws accordingly.
Furthermore, this legislation would place a moratorium on the merger and acquisition of large agriculture companies until Congress passes comprehensive legislation, based on the recommendations of the commission, that re-establishes a fair and competitive marketplace for family farms and small and medium-sized agriculture producers.
Ohio farmers have dealt with serious adversity in recent years, including extreme weather, global political volatility and major supply chain disruptions due to COVID-19. They should not be additionally subjected to inflated input prices that squeeze their margins and make it more difficult for Ohioans to put food on the table. Lower costs for our farmers means relief for every hardworking Ohioan who’s struggling with inflation.
I’ll continue to fight to reverse anti-competitive trends within the agriculture industry and pass legislation that protects farmers and provides needed relief to Ohioans. Our farmers and families depend on it.
Tim Ryan is a Democrat running for the U.S. Senate who currently serves as the U.S. House, representing Ohio’s 13th District. His column does not necessarily reflect the opinion of The Lima News editorial board or AIM Media, owner of The Lima News.
