Iowa farmers, ag leaders urge Tom Vilsack, Katherine Tai to lower tariffs to ease fertilizer costs

WOODWARD, Iowa — Confronted with skyrocketing bills, Iowa farmers urged U.S. agriculture and commerce leaders to ease tariffs on fertilizers in an effort to chop their prices to develop subsequent 12 months’s corn, soybeans and different crops.

U.S. Agriculture Secretary Tom Vilsack, U.S. Commerce Consultant Katherine Tai and U.S. Rep. Cindy Axne, a Democrat, met with Iowa farmers and ag leaders on Thursday for greater than an hour at a farm close to Woodward.

Iowa farmers advised the officers, who touted the advantages of the $750 billion Inflation Discount Act that President Joe Biden signed into legislation this week, that the costs of fertilizer, seed and different merchandise wanted to boost crops are exploding. 

“Prices on my farm are up about 325%. It is attending to be insufferable,” stated Lance Lillibridge, a northeast Iowa farmer and the Iowa Corn Growers Affiliation board president.

An Iowa State College research in June confirmed that some fertilizer costs are as a lot as 4 instances larger now than in 2020, whereas crop costs have roughly doubled.

U.S. farmers depend on nitrogen, potash and different fertilizer imports from China, Russia, Canada, Morocco and different international locations to develop their crops. A few of these imports face U.S. tariffs.

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Earlier this month, three main farm teams requested the Biden administration to supply quick, short-term aid to farmers by eliminating tariffs on imported potash from Morocco.

In an announcement in response to Vilsack’s go to, U.S. Sen. Joni Ernst, a Republican, criticized the Biden administration for not doing sufficient to decrease fertilizer tariffs.

“The prevailing tariffs on fertilizer are nothing greater than a tax on our farmers,” Ernst stated. “They hinder their potential to afford crucial vitamins wanted to fulfill the rising demand.”

Ernst, amongst different senators, has urged Biden to waive duties on fertilizer imports, much like the motion the president took to assist out the photo voltaic trade.

Final month, a federal commerce fee rejected efforts so as to add tariffs on nitrogen merchandise from Russia and Trinidad and Tobago.

Vilsack responded partly to their issues, saying the U.S. Division of Agriculture is working to spice up home fertilizer manufacturing. Amongst these efforts, the USDA introduced in March it was making $250 million in grants out there to encourage U.S. manufacturing.

Daniel Heady, the Iowa Farm Bureau Federation’s nationwide coverage adviser, stated the group appreciated the USDA’s efforts to spice up home manufacturing. However, he added, it may not come quickly sufficient.

“We’re all for constructing native home manufacturing of ag inputs, but it surely takes awhile to do this and some huge cash,” Heady stated. “Till we get to that time, we have to permit for the free motion of ag merchandise,” with lowered tariffs on fertilizers.

Lillibridge stated producers are involved about Mexico’s decree to section out corn that has been genetically modified, the majority of the U.S. provide. Mexico is the No. 1 marketplace for U.S. corn and dried distillers grain, a byproduct from making ethanol that is excessive in protein and fed to livestock.

“Mexico is a giant deal,” Lillibridge stated. “We have not confronted any commerce disruptions but, however farmers are very involved about what might occur.”

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Bob Haus, authorities affairs supervisor for Corteva Agriscience, stated Mexico has already denied approval of 14 seed traits in corn, soybeans and cotton, a development that can affect U.S. farmers and exports to the nation.

Seed traits assist decide how nicely crops can survive rising challenges like pests and extreme climate.

“Our freedom to function is our freedom to innovate,” stated Haus, who famous that Corteva, previously DuPont Pioneer in Johnston, employs about 3,000 folks in its Iowa operations.

Vilsack stated a part of Mexico’s causes for phasing out genetically engineered corn by 2024 has to do with the nation’s heritage. “White corn was first developed and established” in Mexico, he stated. “It is about Mexican pleasure. Mexican heritage. It is distinctive to them. It is a part of their identification.”

However Vilsack advised Mexico leaders customers might face rising meals prices with out U.S. corn to feed livestock. “That made an impression,” he stated. “And we’re in a dialogue about how we would get to a greater place” on accepting biotech traits and persevering with U.S. corn gross sales to the nation.

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Vilsack famous that U.S. farm exports hit a report in 2021. “And we’re anticipating to do it once more this 12 months,” given the present export tempo, he stated. U.S. farm and meals exports totaled $177 billion final 12 months, beating a report set in 2014 by practically 15%, the U.S. Division of Commerce reported.

Craig Floss, CEO of the Iowa Corn Growers Affiliation, stated export markets are crucial to U.S. corn growers, accounting for a couple of quarter of the crop, both immediately, fed to livestock, or as byproducts, akin to dried distillers grains.

Exports are “actually the distinction between earnings or not on our farms,” he stated. “We actually have to increase our world market entry.”

Vilsack stated he believed that U.S. farmers will lead the nation on decreasing greenhouse gases that contribute to local weather change, with the assistance of the Inflation Discount Act, which offers $19.5 billion to help conservation by means of conventional USDA applications.

Axne stated she pushed for $500 million within the new spending legislation to construct out pumps and different infrastructure so customers should purchase ethanol, biodiesel and different renewable gas.

Donnelle Eller covers agriculture, the surroundings and power for the Register. Attain her at deller@registermedia.com or 515-284-8457.