65 farm groups press U.S. Commerce Secretary to scrap Moroccan phosphate duties
A coalition of 65 state and national farm groups has urged U.S. Commerce Secretary Howard Lutnick to revoke countervailing duties on phosphate fertilizer imported from Morocco, arguing the tariffs are deepening a cost squeeze on growers as fertilizer prices reach fresh highs.
The letter, sent June 1 and signed by groups including the National Corn Growers Association, asks Lutnick to end the order “to ease the pain felt by farmers as fertilizer prices reach new highs.” The duty on Moroccan phosphate currently runs at about 16.6% to 16.8%, after starting at 19.97% in 2021, falling to 2.21% following a court remand, and then being raised again in a later review.
The groups cited a Texas A&M University Agricultural and Food Policy Center study estimating the duties on Moroccan phosphate added roughly $6.9 billion to input costs for U.S. corn, soybean, wheat, rice, sorghum and cotton growers across the 2021 through 2025 seasons. At its full 19.97% rate, the duty raised the U.S. price of diammonium phosphate by an estimated 28.6%, the letter said.
“Net farm income has fallen roughly 31% from its 2022 peak, fertilizer prices are up more than 150% since 2020, and Chapter 12 farm bankruptcies have surged to their highest levels in several years,” the letter said, noting growers are in a fourth straight year of losses.
The appeal lands less than a week after Federal Trade Commission Chairman Andrew Ferguson announced an industry-wide investigation into fertilizer pricing and market concentration. Mosaic controls roughly three-quarters of domestic phosphate production, while Morocco’s state-owned OCP is the main exporter subject to the order. A decision on whether to revoke the duties rests with Commerce.
Source: DTN Progressive Farmer
What to know about the Moroccan phosphate duties
The U.S. Commerce Department imposed countervailing duties on phosphate fertilizer from Morocco in 2021, following a petition from domestic producer Mosaic. The Moroccan rate was set at 19.97%, later cut to 2.21% after a court remand, and subsequently raised to about 16.6% to 16.8% in a later administrative review.
The groups argue the duties limit import competition and raise prices for diammonium phosphate (DAP) and monoammonium phosphate (MAP). A Texas A&M study estimated the measures added about $6.9 billion to grower input costs from 2021 through 2025, with the full duty rate lifting U.S. DAP prices by an estimated 28.6%.
Domestic phosphate producers are shielded from lower-priced imports. Mosaic, which the farm groups say controls roughly three-quarters of U.S. phosphate output, originally petitioned for the duties. Growers contend that this concentration leaves them with fewer supply options when prices spike.
The order targets phosphate exported from Morocco, where state-owned OCP is the dominant producer and one of the world’s largest phosphate and DAP exporters. Lower duties would make OCP’s cargoes more competitive in the U.S. market.
The decision to revoke or maintain the duties sits with the Commerce Department. The push comes amid broader federal scrutiny of fertilizer markets, including a Federal Trade Commission industry-wide investigation announced in late May and an earlier Justice Department antitrust probe. The Trump administration has said lowering fertilizer prices is a priority.
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