Iowa Attorney General Is Looking Into Fertilizer Prices
As farmers are preparing for the 2022 growing season, something that has been looming over their heads is the increasing fertilizer prices.
Just in the last year, we have seen fertilizer prices skyrocket 200 to even 300 percent. According to fertilizer companies, these increases have to do with natural gas cost spikes from Hurricane Ida, but Iowa Attorney General Tom Miller told Iowa Public Radio he’s looking into whether or not this justifies the jump.
"We’re taking a look at why this increased, what happened? What’s the relationship to supply and demand? And ask them for their side of the story," Miller said.
Miller has written a letter to the CEOs of top fertilizer companies but stresses this is NOT an investigation.
"It’s sort of the initial look to see why this happened. And afterward, we can make decisions," he said.
Miller said that he has been talking with other attorney generals about the issue and has been working with economists to study it. He is hoping to have some findings in a few months.
What Does High Fertilizer Prices Mean for Farmers?
Fertilizer is important to help provide crops with the nutrients they need to grow. One solution some experts are suggesting is using compost.
Another solution is to grow other crops such as soybeans.
Soybeans use less fertilizer than corn does making it more desirable for farmers worried about the rising costs of fertilizer.
Soybeans also can be tempting to those farmers that are facing drought conditions this year, due to the fact that soybeans can handle dryer conditions better.