OMAHA, Nebraska - Sixty-five state and national farm organizations on Monday called on Commerce Secretary Howard Lutnick to eliminate the current 16.8% countervailing duty on phosphate fertilizer imports from Morocco, arguing that the policy is increasing production costs for farmers at a time when the U.S. agricultural economy is under significant financial pressure.

The request arrives as growers across major agricultural states, including Iowa, Illinois, Nebraska, Kansas, Texas and Minnesota, continue to face elevated expenses for fertilizer, fuel, machinery and crop financing. Farm groups say the tariff is making an already difficult economic situation even worse.

According to the coalition, the duties directly affect the price of one of the most important crop nutrients used in the production of corn, soybeans, wheat, cotton, rice and sorghum.

In a letter sent to the Commerce Department, the organizations argued that the tariff undermines ongoing efforts by the USDA, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to investigate fertilizer pricing practices and improve market competition.

"These costs land on an already fragile farm economy," the groups emphasized, noting that many producers have now endured four consecutive years of declining profitability.

The concerns come just days after more than 100 agricultural leaders from 18 states met in Texas, where FTC Chairman Andrew Ferguson announced a federal investigation into fertilizer pricing and market concentration.

Billions of Dollars in Additional Costs

The economic impact cited by farm organizations is substantial.

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A study from the Agricultural and Food Policy Center at Texas A&M University estimates that the phosphate duties increased costs for American farmers by approximately $6.9 billion between 2021 and 2025.

Researchers found that when the tariff was initially imposed at nearly 20%, U.S. prices for diammonium phosphate (DAP) fertilizer rose by an estimated 28.6%.

For many growers, fertilizer remains one of the largest expenses in annual crop production budgets.

Net farm income has fallen roughly 31% from its 2022 peak, while fertilizer prices remain more than 150% higher than 2020 levels, according to figures highlighted by the farm groups.

At the same time, Chapter 12 farm bankruptcies have increased, adding to concerns about the long-term viability of family-owned agricultural operations.

Why Phosphate Fertilizer Matters

Phosphate fertilizer is a critical input for maintaining crop yields, supporting root development and maximizing plant growth.

Without reliable and affordable access to phosphate supplies, producers risk lower productivity and tighter profit margins.

Farm organizations argue that reducing barriers to imported phosphate could increase market competition and help stabilize prices during a period of heightened uncertainty across agricultural markets.

The debate also has implications for the broader U.S. food supply chain, as fertilizer costs directly influence production decisions and, ultimately, food prices.

Supply Chain and Food Security Concerns

Another key concern raised by farm groups is the concentration of phosphate production within the United States.

The organizations argue that relying heavily on a limited number of suppliers increases the risk of future supply disruptions, especially during periods of geopolitical instability or transportation challenges.

"Far from safeguarding domestic supply, these duties have contributed to higher costs while limiting access to additional fertilizer sources," the coalition argued.

Supporters of removing the tariffs believe greater import competition could help strengthen supply security while easing financial pressure on growers.

The Commerce Department has not yet indicated whether it plans to revisit the phosphate duty policy.

However, pressure is mounting as farm groups, commodity organizations and agricultural economists continue highlighting the connection between fertilizer costs, farm profitability, commodity production and rural economic health.

For many producers heading into another challenging crop cycle, the outcome could influence everything from planting decisions to long-term investment plans.