house resolution no.205

Rep. Carra offered the following resolution:

A resolution urging the U.S. Congress, federal agencies, and state departments to address the ongoing fertilizer price increases and shortages that are impacting Michigan farmers.

Whereas, Michigan’s agricultural industry is vitally important to the state economy. As our nation’s second most diverse agricultural system, it contributes more than $104.7 billion in economic activity annually to the state. More than 800,000 people work in Michigan’s agricultural industry, and care for nearly 10 million acres of land; and

Whereas, Fertilizer is a critical agricultural input that is utilized by farmers to provide nutrients to their land and maximize the productivity of their farms. It is essential that Michigan’s farmers have access to fertilizers so they can nourish their land and maintain production levels; and

Whereas, Fertilizer prices in the United States have dramatically increased over the past decade. While the increase in prices can be attributed to several factors, such as strong demand for fertilizer and rising costs of raw materials, the recent decision by the United States Department of Commerce to impose tariffs on imports of phosphate-based fertilizers from Morocco and Russia has significantly increased fertilizer prices. These tariffs were implemented in early 2021 after the U.S. International Trade Commission (ITC) determined that the import of foreign phosphatic fertilizers injured U.S. manufacturers; and

Whereas, These tariffs place a substantial burden on farmers who are unable to compete with rising costs of production. Additionally, due to the highly consolidated structure of the U.S. fertilizer manufacturer industry, many farmers have little bargaining power with suppliers. For example, one company controls an estimated 90 percent of the U.S. phosphate fertilizer production while another controls nearly half of U.S. urea fertilizer production. This highly concentrated structure has resulted in local input dealers having very little bargaining power with the manufacturers, and cost increases are inevitably passed on to farmers; and

Whereas, Michigan farmers are facing the greatest increase in fertilizer prices in 13 years. Without access to fertilizer, Michigan’s agricultural production will fall, and the state’s economy will suffer. Not only will farmers be directly impacted, but the broader supply chain will also suffer; now, therefore, be it

Resolved by the House of Representatives, That we urge the U.S. Congress, federal agencies, and state departments to address the ongoing fertilizer price increases and shortages that are impacting Michigan farmers; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States Senate, the Speaker of the United States House of Representatives, the members of the Michigan congressional delegation, the U.S. Secretary of Commerce, the U.S. Secretary of Agriculture, the commissioners of the U.S. International Trade Commission, and the Director of the Michigan Department of Agriculture and Rural Development.