One of the key components in the price farmers have been paying for fertilizer comes from the duties we had placed on phosphate fertilizer from Morocco. The United States is not a major producer of the key component in corn growing. Therefore, we must import much of what we use. The duty was at almost 20% on the supplies coming in, and that cost has been passed down to farmers for a few growing seasons.
Last week Senators Ernst & Grassley joined Kansas Senator Moran in asking the Commerce Department to reevaluate the duties that were in place. The Senators said that the data that was used in implementing the duty was skewed and that farmers are paying an unfair price because of this mistake. Yesterday, the Commerce Department agreed and lowered the duty to 2.12%. Just an hour or so before this was announced, I asked Senator Joni Ernst to tell us about the situation.
While we don’t produce nearly as much as we consume, Ernst says it is also important to protect the producers we do have, and not let foreign imports undermine their opportunity.
When I asked the Senator if the Commerce Department would decide in time for spring planting, Ernst responded that she expected it to be a drawn-out process. Maybe even up to a year and a half.
Turns out, they only needed an hour and a half.
