Farmers link industry consolidation to higher fertilizer and input costs, survey finds

A majority of U.S. farmers believe consolidation among fertilizer manufacturers, seed companies, crop-protection suppliers, and agricultural retailers has increased the prices they pay for inputs, according to a survey conducted by the University of Illinois and published by farmdoc daily.

The survey, conducted in fall 2024, collected responses from more than 220 farmers in each input sector across 25 states, with Illinois growers accounting for 43% of participants. Between 54% and 58% of respondents said consolidation among input manufacturers and retailers results in higher prices. Farmers rated the impact of consolidation on pricing between 2.41 and 2.50 on a five-point scale, where lower scores indicate a stronger perception that consolidation leads to higher costs.

While price increases were the primary concern, farmers expressed more moderate views regarding the effects of consolidation on customer service and product availability. The findings come as growers continue to face elevated fertilizer costs and tight profit margins, adding to ongoing debate about market concentration in the fertilizer, seed, and crop-protection industries, where a relatively small number of companies control significant shares of global supply.

The study’s authors — Michael Paulson, Brad Monaco, Gary Schnitkey, and Carl Zulauf — cautioned that the survey measures farmer perceptions and does not prove that consolidation directly causes higher prices. However, they said the results highlight areas where growers feel the greatest competitive pressure. Additional analysis of the survey data is planned.

Source: farmdoc daily