Hawkeye Reporter

The Senate Judiciary Committee, led by Chairman Senator Chuck Grassley of Iowa, convened a hearing on October 28, 2025, to address rising input costs in the seed and fertilizer industries. The hearing, titled “Pressure Cooker: Competition Issues in the Seed & Fertilizer Industries,” aimed to examine factors driving up expenses for American farmers and explore measures to restore competition.

Senator Grassley highlighted concerns raised by farmers about limited choices and high prices for essential agricultural inputs. He stated, “America’s farmers are the most productive in the world. They take the risk, put in the work and feed the United States and much of the world. But they also operate on thin profit margins. If input costs go up or switching suppliers is too hard, that pinch is felt by every farmer, family and consumer in the world.”

Citing data from USDA’s Agricultural Prices reports, Grassley noted that price indexes for seed and fertilizer were significantly higher in January 2025 compared to early 2021. He attributed part of this increase to inflation rates under the Biden administration.

The hearing focused on various contributors to these trends such as energy markets affecting nitrogen production, global supply disruptions, logistics challenges, and market concentration among a few large companies. According to Grassley, “Over the last 20 years, a few big companies have bought up many of the smaller seed and chemical businesses. Those same companies now sell not just the seeds, but also the pesticides and digital farming tools that tell farmers what to plant and when.”

Grassley proposed legislative action through his Fertilizer Research Act, which would require a comprehensive study by the Department of Agriculture into why fertilizer prices are elevated. The department would also be tasked with making recommendations for ongoing public reporting.

In addition to legislative solutions, Grassley called for immediate executive action regarding import duties: “There is something that the Trump administration can do right now to help ease the burden for farmers: lowering the countervailing duties on phosphate from Morocco. In 2024, the Biden administration increased duties on Moroccan phosphate to 18 percent.” He added that these duties have restricted access to an important input without alternatives.

The senator outlined four principles for reform: transparency so farmers understand true pricing; portability so they can control their own data; fair dealing in contracts; and accountability when mergers fail to deliver promised benefits.

Grassley emphasized bipartisan cooperation with Senator Durbin and stated his goal was “to identify practical steps — legislative and regulatory — that respect innovation and property rights but restore real, on-the-ground competition.” He concluded by asserting that when farmers have fair choices at fair prices it benefits rural communities, consumers, and national food security.