Category: Economic Impact

TFI to House Ag Committee: Fertilizer is a Global Commodity Critical to Our Nation’s Food Supply Chain

ARLINGTON, VA – In testimony submitted to the House Agriculture Committee on Wednesday, The Fertilizer Institute (TFI) President & CEO Corey Rosenbusch highlighted the global nature of the fertilizer market and its critical role in feeding the world’s growing population.

“First of all, the fertilizer industry ensures that farmers receive the nutrients they need to enrich the soil and, in turn, grow the crops that feed our nation and the world,” Rosenbusch said. “Without fertilizer, we would have to make do with half of our current food supply.”

Pivoting to the subject of the committee hearing, “The Immediate Challenges to Our Nation’s Food Supply Chain,” Rosenbusch continued that fertilizer markets and related supply chain challenges must be considered within a global context, as demand for fertilizer is global in nature and fertilizers are used by farmers in nearly every country in the world.

“Fertilizers are truly global commodities, as these materials are transported from the limited number of countries which produce them to the global market which requires them,” Rosenbusch explained. “Nearly 44% of all fertilizers produced globally are exported. Moving this material from production facilities to farms requires virtually every mode of transportation and a carefully orchestrated system of logistics to serve farmers on a just-in-time basis.”

Prices have been rising for nearly all goods and services over the past 18-20 months, including fertilizer. “A variety of factors impact fertilizer markets, and most recently, are negatively impacting supply and raising costs,” Rosenbusch said. “Current factors that have most influenced the current fertilizer market are global demand for fertilizer, disruptive weather events, deferred facility maintenance due to the COVID-19 pandemic, international trade sanctions and actions, increasing transportation costs, and the rising cost of natural gas.”

Domestically, the February winter ice storms and Hurricane Ida disrupted production in an area responsible for 60% of domestic ammonia production. Further eroding the ability of domestic manufacturers to recover from weather-related lost production was the deferral of necessary maintenance to multi-billion-dollar facilities. This maintenance was delayed to reduce potential exposure to COVID from additional personnel on site and will be ongoing through 2022, resulting in facility closures of 2-6 weeks.

International events have also affected fertilizer supply. “While the U.S. imports 86% of potash fertilizer from Canada and only 5% from Belarus, Belarus is a large supplier of potash and accounts for 21% of global production,” Rosenbusch said. “The sanctions on Belarus have had an impact on the global supply-demand balance and the price of fertilizer. Additionally, China has recently banned phosphate fertilizer exports and instituted tighter export controls on other fertilizer materials, including urea, further tightening the global nitrogen market.”

Rising energy costs affect the cost of fertilizer production, namely the key input of natural gas which accounts for 70-90% of the production cost of ammonia. “The U.S. has enjoyed low natural gas prices in recent years, but in the past six months domestic natural gas prices have increased by 224%,” explained Rosenbusch. “Natural gas prices in Europe are currently four times higher than in the U.S. and have forced facilities there to reduce output or idle plants, leading to lower availability and higher prices for farmers.”

Transportation costs have also risen dramatically, especially for certain types of fertilizer. “Rail rates for shipping anhydrous ammonia, the building block of all nitrogen fertilizers and one of the most efficient sources of nitrogen for farmers, have increased by 206% over the past twenty years,” said Rosenbusch. “That increase is more than triple the average increase for all other commodities combined.” Large cost-saving initiatives and questionable authority delegation to the rail industry, coupled with the fact that more than half of all fertilizer tonnage moves by rail, have raised shipping costs for fertilizer by millions of dollars.

“Many in the agricultural sector have experienced challenges related to crop inputs and fertilizer has not been spared,” Rosenbusch concluded. “We are proud of the industry’s efforts to ensure supply while dealing with changing global dynamics so that farmers in the U.S. and abroad are able to grow the food, fuel and fiber our growing world needs.”  

TFI’s full submitted testimony can be read by clicking here.

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Releases 2021 Policy Priorities

WASHINGTON, D.C. – The Fertilizer Institute (TFI) today released its list of 2021 public policy priorities for working with the Biden Administration, as well as a closely divided 117th Congress.

“Our number one goal is to ensure the fertilizer industry is able to continue feeding the world sustainably within a legislative and regulatory environment that allows for industry growth and innovation,” said TFI President & CEO Corey Rosenbusch. “The policy priorities identified and approved by our members illustrate the industry’s focus on the safety and security of employees and the communities in which they operate, a commitment to environmental stewardship, and the efficient use of energy.” 

TFI’s priorities are broken down into six key areas: safety and security; energy and economic growth; environment; innovation; trade; and transportation and infrastructure.

“While safety and security are always the number one priority for our members, the environment is also at the top of the list. Specifically, the important role that the fertilizer supply chain plays in being part of the solution to address the many challenges of a changing climate,” Rosenbusch continued. “The fertilizer industry is essential to our modern way of life and our members have made minimizing the environmental impact of crop nutrients a key pillar of how they operate. We want to see that reflected in public policy. It is absolutely critical that any climate change policies or initiatives must not impact our ability to provide farmers with the crop nutrients they need.”

Rosenbusch says that some of that is offense and some of that is defense. An example of offense is TFI’s work to promote the important role agricultural retailers have in providing agronomic assistance and expertise to farmers looking to implement   sustainable fertilizer practices such as the 4Rs, which is utilizing the right source of fertilizer, at the right rate, at the right time and in the right place. “The 4Rs are a scientifically proven method of getting maximum crop yield while significantly reducing environmental impacts, such as run-off, and any state nutrient loss reduction plan must include the 4Rs as a backbone to handling crop nutrients.” Agricultural retailers are also well-positioned to assist their farmer customers interested in participating in voluntary, market-based carbon markets that incentivize the implementation of fertilizer best management practices on the farm which are proven to help sequester carbon in the soil. 

On defense, Rosenbusch says it is mostly about the unintended consequences of policies. “On the issue of greenhouse gas emissions, U.S. production of nitrogen fertilizers is both energy-intensive and trade exposed. We need to make sure that policies are not put into place that send production to areas of the world that do not use more efficient production methods and lack the same type of environmental protections we have in the U.S. Greenhouse gas emissions are a global issue and discouraging efficient production in the U.S. in favor of a dirtier process overseas actually harms the environment more than it helps.”

Tony Will, Chairman of the TFI Board of Directors and President & CEO of CF Industries, Inc., added, “The fertilizer industry in the United States is proud of its legacy of ensuring the food security for our fellow citizens and for the world in a sustainable manner. Our public policy priorities are a roadmap to build on these contributions and to help address the challenges before us, particularly for the environment. We look forward to working with the Biden administration and Congress on solutions that advance our shared commitment to a better and healthier world.”

While TFI will be heavily focused on environmental policy, the issues of trade, infrastructure and safety & security all are critical to the industry, as well. “TFI supported the USMCA and are hopeful that the Biden Administration will be seeking to update existing and creating new trade agreements that promote open markets and fair competition,” Rosenbusch continued. “Trade is incredibly important specifically to our industry, but also to our grower customers that are quite literally feeding the world and need fair access to new and expanded markets.”

Infrastructure is critical to the fertilizer industry because of the just-in-time nature of demand. “Fertilizer needs to be delivered to growers exactly when and where they need it and there is not much room for error. When the optimal window opens   it has to happen, and the industry must  be ready and ensure the materials are all in place,” explained Rosenbusch. “Bottlenecks due to road or bridge closures or delays because of crumbling locks and dams have the potential to be devastating to applying crop nutrients when they are most needed for healthy growth and strong yields.”

TFI will use its member-driven public policy priorities to educate policymakers on the realities of an essential industry that is responsible for half of all food grown around the world. “Our industry is vital to ensuring our farmers can enrich the soil and grow the crops that feed the world and its growing population,” Rosenbusch concluded. “We look forward to working with the Biden Administration and the new Congress.”

TFI’s full list of 2021 public policy priorities can be found here.

 

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Releases Fertilizer Industry Economic Impact Study: Contributes $130 Billion to US Economy

WASHINGTON, D.C. – The Fertilizer Institute (TFI) today released the Fertilizer Industry Economic Impact Study, highlighting the importance and economic contributions of the U.S. fertilizer industry to the national, state and local economies. The study found that the fertilizer industry contributed over $130 billion and nearly 500,000 jobs to the U.S. economy in 2019.

“The fertilizer industry doesn’t just help grow the food on your dinner table, we also help grow the U.S. economy,” said TFI President and CEO Corey Rosenbusch.

Deemed an essential industry during the COVID-19 pandemic, fertilizer manufacturers, wholesalers, retailers and distributors have a sustained positive impact on communities all across the nation.

“We often highlight that fertilizer is responsible for over half of the world’s food production, meaning without our industry we’d only have half as much food for the planet’s growing population,” Rosenbusch continued. “The data in the study shows that we’re not only feeding the world, we’re also feeding our national, state and local economies through direct and indirect employment and wages, the value of the crops and farm products produced with our plant nutrients, and the transportation and logistical network that moves plant nutrients to the farmers to be there exactly when they need them. The movement of fertilizer alone benefits our economy to the tune of nearly $9 billion annually.”

The publication of the study, conducted for TFI by John Dunham and Associates, is the culmination of months of compiling data including the direction contribution, supplier contribution and downstream positive impacts of the entire fertilizer industry value chain – from manufacturers to wholesalers, retailers and goods and service providers.

To learn more about the impact the fertilizer industry has on the U.S. economy please visit: http://economicimpact.tfi.org/

 

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TFI Looks Forward to USMCA Implementation

WASHINGTON, D.C. – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch released the following statement regarding the implementation of the United States-Mexico-Canada Agreement (USMCA).  

TFI applauds President Trump, U.S. Trade Representative Robert Lighthizer, House Speaker Nancy Pelosi, Minority Leader Kevin McCarthy and Senate Majority Leader Mitch McConnell for their bipartisan efforts to put American workers and industry in a position to be able to compete on the global stage by ensuring that markets remain open and fair.

“We look forward to the implementation of the USMCA, which is an emphatic win for agriculture and the millions of hard-working men and women who grow the food, fuel and fiber that feeds our growing world. Canada and Mexico are our two largest agricultural trading partners and the USMCA puts American workers and industry in a position to be compete on a global stage and ensure that markets remain open and fair. We are confident that USMCA implementation will strengthen U.S. agriculture and the countless communities whose economic well-being is tied directly to the soil.”

COVID-19 News: Fertilizer Industry Steps Forward

No matter where you live, there’s a good chance someone in your community is hungry. According to USDA, in 2019, more than 37 million people in the United States struggled with hunger.  Now, with the Coronavirus outbreak, the number of people struggling to find adequate food is growing exponentially. In recent weeks, many food banks are reporting as much as a 50 percent uptick in demand. Many fertilizer industry leaders in TFI’s membership are stepping up to the plate to help.

Mosaic: Better than a Hat Trick

The Mosaic Company recently announced that it is partnering with the Tampa Bay Lightning NHL hockey team, to donate $200,000 to Feeding Tampa Bay, which distributes food to pantries and similar services for 600,000 people in the region. It’s the latest example on a growing list of ways the company continues to support local communities during these challenging times. Prior to the NHL’s pause on the regular season, Mosaic had planned to donate $70,000. For every goal scored by a Lightning player at home, Mosaic pledged $500 and $5,000 for every Bolts hat trick on home ice. But, as the company says, “unprecedented times call for unprecedented measures,” and Mosaic’s leadership decided to more than double the donation amount to $200,000.

“Mosaic’s mission is to help the world grow the food it needs,” said President and CEO Joc O’Rourke. “At this time of critical need, we are pleased to support the many vital community food organizations associated with the Goals for Food program. We look forward to continuing our partnership with the Lightning in the years ahead.”

CHS, Inc.: Matching Employee Generosity

CHS, Inc., another industry leader, has committed $125,000 to the Greater Twin Cities United Way, local social service agencies and Feeding America to assist with COVID-19 response efforts. Donations will provide immediate support to those most vulnerable to the economic and health-related issues caused by COVID-19. CHS has committed a dollar-for-dollar match to employee and community contributions to the Greater Twin Cities United Way COVID-19 Response and Recovery Fund, up to $75,000. One hundred percent of the donations will go directly into the community to address critical community needs including food, shelter, childcare, sanitation and hygiene supplies for approximately 75,000 people across the region. CHS has also donated a total of $25,000 to support Neighbors, Inc. and The Open Door to ensure food is available for those in need living near our corporate office, and has pledged $25,000 to Feeding America. The Feeding America network of food banks secures and distributes 4.3 billion meals each year through food pantries and meal programs, including thousands of rural communities where CHS plays a vital role.

Stay tuned for more news on our members’ commitment to employees and neighbors. We could all use a little more good news at this time, so please share yours with us so that we can include you in upcoming blog posts about ways the industry is extending kindness to those in need.

 

TFI Wins HOS Exemption for Fertilizer

WASHINGTON, D.C. – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today applauded the Federal Motor Carrier Safety Administration (FMCSA) for including fertilizer in the list of products covered by the agency’s Hours of Service (HOS) emergency declaration. This inclusion will help avoid any potential bottlenecks in the fertilizer supply chain during these challenging times.

“First of all, we thank Department of Transportation (DOT) Secretary Elaine Chao and FMCSA Acting Administrator Jim Mullen for adding fertilizer to the essential commodities list,” Rosenbusch said. “At the end of the day, it’s about putting food on Americans’ tables. Fertilizer relies on a safe and efficient transportation network to get crop nutrients to farmers where and when they need them. With the spring planting session upon us, any delays could lead to farmers not getting the essential crop nutrients when and where they are needed to grow the food, fuel and fiber our world needs.

TFI requested that fertilizer be added to the emergency declaration in a letter to Secretary Chao on Wednesday, urging that fertilizer is an essential precursor to food production and that the time-sensitive nature of fertilizer delivery warranted fertilizer’s inclusion. On Thursday, FMCSA responded by releasing an amended list that included fertilizer. 

“Because of Secretary Chao and Acting Administrator Mullens’ actions, farmers across the country will be able to rely on the safe and timely delivery of fertilizer on which our food security depends,” Rosenbusch concluded.

TFI Leads Ag Coalition in Urging States to Use CISA Guidance to Ensure Food and Agriculture are Deemed Essential

WASHINGTON, D.C. – Led by The Fertilizer Institute (TFI), over 40 national food and agriculture organizations today joined together to send letters to all 50 governors requesting that they “incorporate the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) guidance and any future amendments into their state response plan, and any critical shelter-in-place or shut down orders for their state, allowing these workers, facilities and services to continue to operate and provide necessary inputs for the food and agriculture supply chain.”

The letter highlights the critical nature of these workers, facilities and services and the importance of maintaining their ability to continue to operate and provide necessary inputs for the food and agriculture supply chain. Potential disruptions to these businesses would include impacts on accessibility of seed, fertilizer, crop protection products, credit providers, agricultural labor, equipment, grains, oilseeds and processed commodities, flour, animal food and ingredients for food-producing animals, modes of transportation, daily movement of milk and all other agricultural commodities.

The letter concludes with the need for swift and consistent action, saying, “[w]ith the spring planting season already upon us, the next six to eight weeks will be crucial to ensure that American agriculture can operate safely and without undue burdens that could inhibit our ability to do what we do best, feed the world.”

The full letter can be read by clicking here.

TFI Urges States to Use CISA Guidance in Designating Fertilizer an Essential Industry

large truck on dirt road

WASHINGTON, D.C. – In a letter sent to all 50 state governors on Monday, The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch requested that states use guidance issued by the Department of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency (CISA) that lists fertilizer industry employees as essential workers and the fertilizer industry as one of the nation’s critical infrastructure industries.

“Using the federal guidelines will ensure a consistent approach across all 50 states and local governments,” Rosenbusch said. “And having fertilizer and all agriculture inputs recognized as “essential services” will ensure that American agriculture can remain operable and unfettered across the country.”

The next six to eight weeks are crucial to the fertilizer industry and farmer customers, as they conduct spring planting activities. The timely delivery of plant nutrients to American farmers is critical to their ability to produce food, fuel, and fiber.

“In order to get plant nutrients to the farm, the fertilizer industry relies on a safe and efficient transportation network, including rail carriers, ports, barges, pipelines, and trucks,” Rosenbusch continued. “Fertilizer is responsible for 50 percent of crop yields and is essential to our nation’s agricultural production and food supply. Our members have taken steps to remain fully operational throughout the duration of this event while taking necessary precautions to protect the health and safety of their employees and the communities in which they operate.”

TFI is not currently aware of any prohibitions contemplated on interstate shipments of goods to contain the spread of COVID-19 at this time, but stressed that such constraints could cripple the ability of its members to provide farmers with the fertilizers they need in a very limited planting window.

The full letter can be read by clicking here.

 

TFI Urges White House to Designate Fertilizer as Essential

WASHINGTON, D.C. – In a letter sent to President Donald Trump on Wednesday, The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch requested that the federal government recognize fertilizer and all agriculture inputs as “essential services” in order to ensure that American agriculture can remain operable and unfettered. 

“The next six to eight weeks will be crucial to our members and their farmer customers, as they conduct spring planting activities. The timely delivery of plant nutrients to American farmers is critical to their ability to produce food, fuel, and fiber,” Rosenbusch said. “In order to get plant nutrients to the farm, the fertilizer industry relies on a safe and efficient transportation network, including rail carriers, ports, barges, pipelines, and trucks. In addition, the ability to move products across the border of Canada is also an important part of the fertilizer supply chain.”

TFI is not currently aware of any prohibitions contemplated on interstate shipments of goods to contain the spread of COVID-19 at this time, but stressed that such constraints could cripple the ability of its members to provide farmers with the fertilizers they need in a very limited planting window.

“Fertilizer is responsible for 50 percent of crop yields. It is essential to our nation’s agricultural production and food supply,” Rosenbusch continued. “Our members are taking steps to remain fully operational throughout the duration of this event while taking necessary precautions to protect the health and safety of our employees and the communities in which they operate.”

The full letter can be read by clicking here.

TFI Applauds DHS Move to Designate Fertilizer Industry as Essential

team meeting in crop field

WASHINGTON, D.C. – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today applauded the Department of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency’s (CISA) guidance listing fertilizer employees as essential and the fertilizer industry as one of the nation’s critical infrastructure industries. The industries whose workers are identified are deemed essential to the U.S. economy and are required to continue operations, to the greatest extent possible

“Fertilizer is responsible for 50 percent of crop yields and is essential to our nation’s agricultural production and food supply,” Rosenbusch said. “We thank the Trump Administration for recognizing the critical role fertilizer plays in feeding our nation and the world.”

Prior to the designation of essential by DHS, TFI members were already taking steps to remain fully operational throughout the duration of this event while taking necessary precautions to protect the health and safety of their employees and the communities in which they operate.

“In addition to thanking the administration and the United States Department of Agriculture (USDA), I’d also like to thank all of TFI’s member companies and employees for the incredible work they do every day and for continuing that work in the face of a global pandemic to ensure that farmers have the plant nutrients where and when they are needed to produce the food, fuel and fiber our world needs,” concluded Rosenbusch.

 The full letter sent to President Trump on Wednesday can be read by clicking here.