WASHINGTON (Diya TV) — American lawmakers and farm leaders warned during a Senate Agriculture Committee hearing that rising fertilizer costs and global supply disruptions are worsening the financial crisis facing U.S. farmers. Witnesses pointed to India’s large fertilizer imports and subsidy-driven farm policies as major factors shaping global fertilizer prices and supply trends.
The hearing focused on the growing volatility in global fertilizer markets. Industry leaders said geopolitical tensions, export restrictions, and shipping risks around the Strait of Hormuz have tightened supplies and pushed prices higher. Farmers across the United States said the surge in fertilizer costs has cut into profits and forced difficult planting decisions ahead of the 2025 crop season.
Corey Rosenbusch, president and CEO of The Fertilizer Institute, told lawmakers that India plays a major role in global fertilizer demand because of its large-scale imports and government subsidies. Rosenbusch said India recently issued a urea tender for 2.5 million metric tons at nearly $1,000 per metric ton. He said the Indian government buys fertilizer and heavily subsidizes prices to protect farmers from rising costs.
“In India, the world’s second-largest consumer of fertilizer behind China, the federal government procures their fertilizer and heavily subsidizes it to keep prices low for farmers,” Rosenbusch told the committee.
Industry experts said India’s buying activity often affects global fertilizer prices because the country depends heavily on imports of urea, potash, and phosphates. Analysts also warned that any disruption in shipping routes or a major price spike could sharply increase India’s subsidy burden.
American farmers told lawmakers they are struggling with rising input costs and shrinking profit margins.
Senate Agriculture Committee Chairman John Boozman described the situation as “a generational event” for American agriculture. South Dakota farmer Trent Kubik said fertilizer costs have nearly doubled in recent years. He said many farmers now reduce fertilizer use to save money.
“In 2025, we did not apply any phosphate on our farm because it just did not make economic sense for us,” Kubik said during the hearing.
Kentucky farmer Eddie Melton also warned lawmakers about steep price increases. He said urea prices have jumped 55% since February, while anhydrous fertilizer prices rose 33%. Liquid nitrogen prices climbed 25% during the same period.
Farm groups said many producers now operate with limited working capital after years of volatile commodity prices and high production expenses. They warned that continued increases in fertilizer costs could reduce crop yields and hurt farm incomes across rural America.
Witnesses repeatedly highlighted concerns about the Strait of Hormuz, one of the world’s most important shipping routes for energy and fertilizer products. Rosenbusch told lawmakers that roughly one-third of globally traded urea and half of the world’s sulfur exports pass through the region.
Industry officials said tensions in the Middle East have already created uncertainty in global markets. Shipping delays, higher insurance costs, and supply bottlenecks have added pressure to fertilizer prices. Experts warned that countries heavily dependent on imports, including India, could face serious challenges if shipping disruptions continue during key agricultural seasons.
Lawmakers and industry leaders also discussed China’s restrictions on fertilizer exports. Witnesses said tighter Chinese exports have reduced global supplies and increased price pressure for buyers around the world.
Several senators supported bipartisan efforts aimed at improving market transparency and boosting domestic fertilizer production in the United States. Industry groups said stronger domestic production could reduce dependence on foreign suppliers and help stabilize prices for American farmers.
Farmers and lawmakers warned that supply chain disruptions, geopolitical tensions, and heavy international demand may continue to pressure markets in the months ahead.
