Access to Fertilizer: Competition and Supply Chain Concerns, 15191-15194 [2022-05670]
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15191
Notices
Federal Register
Vol. 87, No. 52
Thursday, March 17, 2022
This section of the FEDERAL REGISTER
contains documents other than rules or
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Doc. No. AMS–AMS–22–0027]
Access to Fertilizer: Competition and
Supply Chain Concerns
Agricultural Marketing Service,
USDA.
ACTION: Notice; request for public
comments.
AGENCY:
On July 9, 2021, President
Biden issued an Executive Order titled
‘‘Promoting Competition in the
American Economy,’’ which creates a
White House Competition Council and
directs Federal agency actions to
enhance fairness and competition across
America’s economy. The Executive
Order directs the Council and member
agencies to ‘‘identify and advance any
additional administrative actions
necessary’’ to promote competition on
an ongoing basis. The Secretary of
Agriculture (the Secretary) takes note of
wide-ranging concern from agricultural
producers regarding access to and
pricing of fertilizer. This notice requests
comments and information from the
public to assist the U.S. Department of
Agriculture (USDA) in identifying
relevant difficulties, including
competition concerns, and potential
policy solutions for the fertilizer market.
DATES: Comments must be received by
May 16, 2022.
ADDRESSES: All written comments in
response to this notice should be posted
online at www.regulations.gov.
Comments received will be posted
without change, including any personal
information provided. All comments
should reference the docket number
AMS–AMS–22–0027, the date of
submission, and the page number of this
issue of the Federal Register. Comments
may also be sent to Jaina Nian,
Agricultural Marketing Service, USDA,
Room 2055–S, STOP 0201, 1400
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SUMMARY:
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Independence Avenue SW, Washington,
DC 20250–0201. Comments will be
made available for public inspection at
the above address during regular
business hours or via the internet at
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Jaina Nian, Agricultural Marketing
Service, at (202) 378–2541; or by email
at jaina.nian@usda.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On July 9, 2021, President Biden
issued Executive Order 14036,
‘‘Promoting Competition in the
American Economy’’ (86 FR 36987)
(E.O. 14036). E.O. 14036 focuses on the
need for robust and open competition in
the American economy to secure broad
and sustained economic prosperity,
promote the welfare of workers, farmers,
small businesses, startups, and
consumers, and prevent the threat that
excessive market concentration poses to
basic economic liberties and democratic
accountability. With respect to
agriculture, E.O. 14036 explains:
Farmers are squeezed between
concentrated market power in the
agricultural input industries—seed, fertilizer,
feed, and equipment suppliers—and
concentrated market power in the channels
for selling agricultural products. As a result,
farmers’ share of the value of their
agricultural products has decreased, and
poultry farmers, hog farmers, cattle ranchers,
and other agricultural workers struggle to
retain autonomy and to make sustainable
returns.
Additionally, E.O. 14017 ‘‘America’s
Supply Chains’’ (No. AMS–TM–21–
0034) (86 FR 20652) (E.O. 14017) directs
the Secretary to examine and address
risks to supply chains.
As part of USDA’s broad and
sustained focus on competition and
supply chain resiliency, the Secretary
takes note of wide-ranging concerns
from agricultural producers regarding
concentrated market power in the
fertilizer industries. Farmers depend on
nitrogen, phosphate, and potassium
(potash) which are key nutrients in
manufactured fertilizer. A handful of
fertilizer companies control the
channels through which farmers obtain
these nutrients to raise a productive
crop.1 In turn, these crops may supply
1 One trading consortium of three production
firms and one U.S. marketing firm control more
than one-third of global potash production. Eight
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inputs for other agricultural production
enterprises, like livestock.
Two companies supply the vast
majority of fertilizer potash in North
America.2 Four companies supply 75
percent of U.S. nitrogen fertilizers.3
These companies’ possession of scarce
resources, often in other countries,4 and
control over critical production,
transportation, and distribution
channels raises heightened risks relating
to concentration and competition.5
Additionally, concentration in the
fertilizer industry constrains farmers’
options for nutrients. In 1984, many
small and medium-sized firms produced
nitrogen fertilizer in quantities that met
or exceeded domestic demand.
However, as domestic industry
firms account for just over half of global production
capacity in phosphate fertilizers. Fertilizer,
comprising 21 percent of total agricultural input
sales, is also among the largest agricultural input
markets in terms of sales, with the largest being
animal nutrition (40 percent of total sales).
Fertilizer and crop seed are among the highest input
costs per price received for farmers. Fuglie, Keith
O., Paul W. Heisey, John L. King, Carl E. Pray, Kelly
Day-Rubenstein, David Schimmelpfennig, Sun Ling
Wang, and Rupa Karmarkar-Deshmukh, (2011),
‘‘Research Investments and Market Structure in the
Food Processing, Agricultural Input, and Biofuel
Industries Worldwide’’, ERR–130, USDA Economic
Research Service, available at https://
www.ers.usda.gov/webdocs/publications/44951/
11777_err130_1_.pdf?v=8531.8.
2 Facts and figures aggregated from various other
primary sources. Kreisle, N., (2020), ‘‘Price Effects
from the Merger of Agricultural Fertilizer
Manufacturers Agrium and PotashCorp’’, FTC
Bureau of Economics Working Paper #345, available
at https://www.ftc.gov/reports/price-effects-mergeragricultural-fertilizer-manufacturers-agriumpotashcorp.
3 Bekkerman, A., Brester, G., & Ripplinger, D.
(2020), ‘‘The History, Consolidation, and Future of
the U.S. Nitrogen Fertilizer Production Industry’’,
Choices, Quarter 2, available at https://www.choices
magazine.org/choices-magazine/submitted-articles/
the-history-consolidation-and-future-of-the-usnitrogen-fertilizer-production-industry.
4 For example, one firm (which acquired the
second biggest North American firm in 2016) in
Canada accounted for 20 percent of the share of
global potash mine capacity, followed by other
firms in Russia (13 percent), Belarus (13 percent),
and Chinese companies (11 percent).2 China, whose
government predominates its fertilizer markets, has
by far the largest fertilizer industry in the world,
and accounted for 20 percent of total global R&D
in 2006.1
5 The merged company was estimated in 2016 to
control 60 percent of North American potash
capacity and 30 percent for nitrogen and phosphate.
(2016), ‘‘Potash Corp, Agrium talk merger;
competition scrutiny expected’’, Reuters, available
at https://www.reuters.com/article/us-agrium-m-apotashcorp/potash-corp-agrium-talk-mergercompetition-scrutiny-expected-idUSKCN1151UT.
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consolidated through mergers,6 the
number of U.S. firms declined from 46
to 13 firms between 1984 and 2008, a
reduction of 72 percent.7 Research and
development (R&D) spending in the
fertilizer industry has remained
limited—around 0.21 to 0.25 percent of
net sales.8 Limited R&D is concerning
given the concentration and depletion of
elemental reserves, some located in
politically unstable areas abroad.9
Increasing concentration exposes
farmers to a range of pricing-related
risks. Fertilizers, especially nitrogen (N)
nutrients, are already in the top three
costs for farmers. Fertilizer costs may
swing dramatically up because of
individual or layered world events 10
such as strong global demand for
6 In the U.S. the number of companies producing
phosphoric acid dropped from 12 to 7 due to
mergers from 2002 to 2008. Three companies
control 80 percent of the production capacity of
phosphoric acid in the U.S. Between 1999–2008,
the number of companies producing muriate of
potash fell by half, resulting in two companies in
2008 owning 100 percent of U.S. potash production
capacity. Wen-Yuan Huang, (2009) ‘‘Factors
Contributing to the Recent Increase in U.S.
Fertilizer Prices, 2002–08,’’ Agricultural Resources
Situation and Outlook AR–33, U.S. Department of
Agriculture, Economic Research Service, available
at: https://www.ers.usda.gov/webdocs/outlooks/
35824/10935_ar33.pdf?v=1826.4.
7 Prior to the 1980s, U.S. nitrogen fertilizer
production by many small firms met or exceeded
total domestic demand. However, between 1984
and 2008, the domestic industry consolidated, with
larger firms expanding. The number of active
ammonia-producing plants decreased from 59 to 22.
In 2018, the four largest U.S. ammonia producers
account for 75 percent of total U.S. output.
Similarly, one merger in 2016 led to the combined
company controlling 60 percent of North American
potash capacity and 30 percent for nitrogen and
phosphate. (2016)‘‘Potash Corp, Agrium talk
merger; competition scrutiny expected,’’ Reuters,
available at https://www.reuters.com/article/usagrium-m-a-potashcorp/potash-corp-agrium-talkmerger-competition-scrutiny-expectedidUSKCN1151UT.
8 David Schimmelpfennig & Keith Fuglie, & Paul
Heisey, (2011), ‘‘Private research and development
for synthetic fertilizers,’’ 67–74, USDA Economic
Research Service available at https://
www.ers.usda.gov/webdocs/publications/44951/
11777_err130_1_.pdf?v=3767.6.
9 The shortage of phosphorus, for example, has
prompted some to term fertilizer a ‘‘geostrategic
time bomb.’’ Vaccari, David, (2009), ‘‘Phosphorus
Famine: The Threat to Our Food Supply,’’
SCIENTIFIC AM, available at https://www.scientific
american.com/article.cfm?id=phosphorus-alooming-crisis. See also Schmundt, Hilmar, (2010),
‘‘Essential Element Becoming Scarce: Experts Warn
of Impending Phosphorus Crisis,’’ DER SPIEGEL
ONLINE INT’L, available at https://www.spiegel.de/
international/world/essential-element-becomingscarce-experts-warn-of-impending-phosphoruscrisis-a-690450.html.
10 For example, in 2019, a substantial reduction
in Chinese purchases of U.S. soybeans may have
caused Corn Belt farmers to shift to corn
production, which is a more nitrogen-intensive
crop. J. Baffes, & W. Koh, (2019), ’’Fertilizer Market
Outlook,’’ World Bank Blogs, available at https://
blogs.worldbank.org/developmenttalk/fertilizermarket-outlook-potash-prices-rise-2019-urea-andphosphates-remain.
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agricultural commodities,11 rising
energy prices,12 export restrictions by
major global suppliers,13 trade
sanctions,14 or war as with the recent
Russian invasion of Ukraine.15 Price
volatilities may stem from a small
number of firms controlling the few
channels for production,
transportation,16 and distribution,
which may give them the market power
to, among other harms, raise costs for
farmers. In 2021, for instance, the prices
U.S. farmers paid for fertilizers
increased over 60 percent. Nitrogen
fertilizers prices increased 95 percent,
and potash fertilizers increased over 70
percent. A recent study finds that feed
11 In 2020, during the early pandemic, relatively
inexpensive fertilizer relative to crop prices (1.44,
compared to .96 average from 2001–2021) led to
strong demand for fertilizers in the U.S., Brazil, and
China. J. Beghin, L. Nogueira (2021), ’’A Perfect
Storm in Fertilizer Markets,’’ Department of
Agricultural Economics at Clayton Yeutter Institute,
available at https://cap.unl.edu/crops/perfectstorm-fertilizer-markets.
12 For instance, natural gas makes up 80 percent
of the cost to produce ammonia for nitrogen
fertilizer. Prices for natural gas are up four to five
times higher than normal. Elkin, E., Durisin, M.
(2021), ’’Fertilizer Prices Are Getting More
Expensive in Europe, Adding to Food-Inflation
Concerns,’’ Bloomberg Markets, available at https://
www.bloomberg.com/news/articles/2021-10-29/
european-fertilizer-prices-set-to-surge-amid-energysqueeze?sref=c4HfBhdW.
13 China, for example, a key supplier of urea,
sulphate, and phosphate, has moved to curb
fertilizer exports. (2021), ’’China’s Curbs on
Fertilizer Exports to Worsen Global Price Shock,
Bloomberg Markets,’’ available at https://
www.bloomberg.com/news/articles/2021-10-19/
china-s-curbs-on-fertilizer-exports-to-worsen-globalprice-shock?sref=c4HfBhdW.
14 U.S. and European sanctions against Belarus,
for instance, have halted its fertilizer shipments.
Belarus accounts for about 10–12 million tons of
fertilizer exported, or a fifth of global supply. Elkin,
E., Skerritt, J., Ribeiro, T., (2022), ’’Fertilizer
Markets Roiled by Belarus Potash Force Majeure,’’
Bloomberg Business, https://www.bloomberg.com/
news/articles/2022-02-17/belarus-potash-makerroils-fertilizer-markets-with-forcemajeure?sref=c4HfBhdW.
15 Russia accounts for 15 percent of the global
trade in nitrogen fertilizers and 17 percent of global
potash fertilizer exports. Additionally, Russian
exports of natural gas, which is a key ingredient for
the production of nitrogen fertilizers, account for 20
percent of global trade. Ukraine is an important
supplier of cereal, which requires fertilizer. North
Africa and the Middle East import over 50 percent
of cereal needs, wheat, and barley from Ukraine and
Russia. Glauber, J. & Laborde, D., (2022), ’’How will
Russia’s invasion of Ukraine affect global food
security?,’’ International Food Policy Research
Institute, available at https://www.ifpri.org/blog/
how-will-russias-invasion-ukraine-affect-globalfood-security.
16 Transportation costs accounted for 22 percent
of the cost of ammonia shipped from Trinidad and
Tobago to the U.S. Gulf (and up the Mississippi
River by barge); and more than 50 percent of the
cost of ammonia shipped from Russia Togliatti to
the Gulf. Ammonia must be transported in
refrigerated vessels or pressurized containers
(barge). Because of this and increasing rail rates, the
cost to ship ammonia by rail is 44 percent higher
than by barge. Increasing freight service costs have
also contributed to increased costs of fertilizer.
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grain farms in 2022 could face an
increase of cost of $128,000 per farm
due to higher fertilizer cost.17
As part of executing our
responsibilities under the E.O. 14036
and E.O. 14017, USDA seeks
information to assist us in identifying
and addressing competition-related
challenges in the U.S. fertilizer market
and other obstacles to producers
accessing affordable, responsibly
manufactured fertilizer.
We are further interested in comments
as to how the matters raised may be
relevant to promoting fair and
competitive markets and local and
regional food systems, creating new
market opportunities (including for
value-added agriculture and valueadded products), advancing efforts to
transform the food system, meeting the
needs of the agricultural workforce,
supporting and promoting consumers’
nutrition security, particularly for lowincome populations, supporting the
needs of small to mid-sized and
underserved producers and processors,
and advancing environmental
stewardship.
II. Written Comments
USDA encourages commenters, when
addressing the elements below, to
clearly indicate the question their
comments are responding to by
repeating the text of the question before
their response. This would assist USDA
in more easily reviewing and
summarizing the comments received in
response to these specific comment
areas. In addition, USDA welcomes
commenters to refer to, with appropriate
explanation, any views set forth in
recently or previously submitted
comments, such as those to E.O. 14017
‘‘America’s Supply Chains’’ (No. AMS–
TM–21–0034) (86 FR 20652).
To help USDA identify challenges
and solutions in the fertilizer market,
USDA is seeking comments on all
aspects of the market structure for
fertilizer as it affects agricultural
producers. We are particularly
interested in how fertilizer market
challenges affect small to mid-sized
producers.
Our request for comment includes but
is not limited to the following elements.
The questions below are meant to
stimulate comments and are not
intended to represent particular views
of USDA or any other government
17 ‘‘Economic Impact of Higher Fertilizer Prices
on AFPC’s Representative Crop Farms,’’ Joe L.
Outlaw et al, Agricultural & Food Policy Center,
Department of Agricultural Economic, Texas A&M
AgriLife Research Briefing Paper 22–01, January
2022, available at https://afpc.tamu.edu/research/
publications/files/711/BP-22-01-Fertilizer.pdf.
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agency. Commenters should feel free to
respond to those they feel most relevant
to them, or as their time and interests
permit. Comments may overlap or be
organized as the commenter feels most
appropriate. Please offer descriptive or
quantitative information, as available
and relevant.
(1) Please describe challenges and
concerns with market concentration and
power in the fertilizer industries,
including the extent of control by any
firms over farmers’ and business’ access
to fertilizer, pricing, availability,
transportation and delivery, quality, and
any other contract terms or other factors.
Please describe how these challenges
have developed or evolved over time,
and any details on geographic or other
divergences within various regions of
the United States or between the United
States and international markets for
fertilizer.
(2) Please comment on both long and
short-term trends in fertilizer prices.
What role have fertilizer, crop prices, or
availability of key raw materials and
manufacturing played in any changes?
Has price volatility increased and if so,
what accounts for this increase in
volatility? Please comment on any
trends and the relationship of fertilizer
prices to prices of relevant crops, such
as corn and soybeans.
(3) Please share your views on
whether the existing fertilizer market is
sufficiently competitive. If you believe it
is not, how do competition problems
manifest themselves? For example, is
there evidence of collusion, market
manipulation, or other anticompetitive
practices among competitors, buyers of
farm products, commodity traders or
related financial firms to fix or alter
prices, allocate markets, or restrict from
where a farmer buys inputs and sells
product? Is there evidence of private or
public communications by fertilizer
companies relating to price, output or
supply that appear to go beyond those
necessary to communicate important
information to customers?
(4) What effect have these mergers
had on a merged firm’s market power
and the ability to squeeze farmers or
squeeze out competitors? Are there
indications that firms have made it
harder for new fertilizer firms to start up
and grow? Is there evidence that firms
have controlled or reduced supply to
keep supply low and prices high? Have
certain mergers allowed the acquisition
of technologies or businesses that
produce, transport, or retail fertilizer
that competitors rely on, with the effect
of lessening competition? Is there
evidence of merged firms using their
market power to price below cost or run
losses in certain segments to undercut
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competitors or potential new market
entrants?
(5) What role do contractual or sales
practices in fertilizer play with regard to
producer access or prices paid to
fertilizer? Have contractual or sales
practices changed recently, or over
time? Has the duration of these
contracts changed over time and if so,
how? Do some contracts require farmers
to buy or use fertilizer from one
supplier? Is there evidence of fertilizer
companies preferentially pricing
products differently for some farmers or
dealers and not others? To what extent
and in what ways do buyers of farm
products influence farmers’ use of
fertilizer?
(6) Please describe any requirements
or inducements to bundle a main
product (fertilizer) with another product
or service, and any impacts on
competition. For instance, does such a
practice induce a farmer’s lock-in or
allow the firm offering the main product
(fertilizer) with the secondary product
(e.g.,: pest management chemical or
seed) to exclude competitors from
offering the second product? What
impacts do any of the contractual
requirements listed above or any other
contractual or sales practices have on
competition?
(7) How do transportation and
delivery affect fertilizer competition and
access to fertilizer? For instance, the
U.S. receives imports of fertilizer
derivatives through the Gulf of Mexico,
and ships fertilizer product up the
Mississippi River. To what extent does
market power by fertilizer or applicable
firms over these or other key
transportation channels affect
competition and farmer’s access to
fertilizer? What risks relating to supply
chain, labor or other disruptions are
most relevant?
(8) Please comment on the U.S.
agricultural system’s reliance on foreign
supply of some fertilizers and global
supply chain risks that could result
from trade disruptions. Please comment
on how the conflict in Ukraine may be
impacting fertilizer markets. If other
supply chain or trade disruptions have
been experienced, please describe the
effects and challenges in dealing with
such events. Would greater availability
of domestic or North American options
mitigate risks? Would reducing
dependence on suppliers from any one
country or region mitigate risks? What
tools might be deployed to achieve
those ends?
(9) Please comment on sustainability,
climate, and other environmental
concerns and risks relating to fertilizer
markets. Have market concentration and
power exacerbated these challenges and
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risks? Have they facilitated sectoral
adjustment for climate and
sustainability purposes? Would shifting
fertilizer production to countries with
high standards on labor and
environmental protection improve
competition, better manage
sustainability risks, or otherwise
improve public interest outcomes? What
other strategies may exist to raise
sustainability standards along supply
chains?
(10) What obstacles exist to the
financing and development of new
fertilizer capacity that would enhance
the competitiveness of fertilizer
markets? Would new or expanded
domestic manufacturing, mining,
processing, or alternative fertilizer
production capacity help promote
access to and affordability of fertilizer
for agricultural producers? Are there
existing ‘‘shovel ready’’ manufacturing,
mining, or other processes that could or
should be adjusted to facilitate new
fertilizer production? Are there other
potential new entrants in the near or
medium-term? How might USDA best
support investment in new fertilizer
capacity in the U.S.?
(11) How can USDA further support
more efficient use of fertilizer? Are
current precision agriculture tools
effective at reducing fertilizer
application rates without impacting
yield? Could sub-field management of
application rates improve economic
resiliency of farms? Are there tools that
USDA could support to facilitate better
application rates, timing, and
appropriate use of existing fertilizer
sources? How could risk management
tools such as crop insurance help with
yield gaps from reduced nitrogen
application rates, for example? How
could USDA’s working lands and other
conservation programs better support
more target and efficient use of
fertilizer? How might adverse
community, labor, and environmental
costs arising from the production
fertilizer in certain geographies be better
factored into USDA grants, loans, or
regulatory programs? Are there ways
USDA could support more effective use
of other fertilizers (e.g.: manure) from
livestock? Could considering these
factors improve competition in certain
markets? Please share your views.
(12) Are there concerns or challenges
related to data—e.g., to collection,
privacy, accessibility, control,
concentrated market power, or any other
aspect—as it affects affordability,
accessibility, and use of more targeted
application of fertilizer? For instance, to
what extent does the expanded
application of targeted site-specific crop
management using data from sensors,
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climate readings, or mechanical systems
in agriculture impact competition and
farmers’ access to fertilizer or other
agricultural inputs? Is there evidence of
firms with market power using
information obtained regarding farmers’
farming practices to adversely affect
farmers or competitors? Are there ways
that USDA or other agencies can
safeguard a farmer’s control of data and
enhance competition and fair access?
(13) Please comment on the
availability and accessibility of market
information and data for fertilizers.
Which public or private sources do you
rely on to receive information on
fertilizer prices and other related
markets? Are you able to access timely,
accurate, and comprehensive
information on spot prices of fertilizers
in local, regional, and national markets?
If not, how can USDA further facilitate
price reporting information and
transparency for market participants?
Beyond price reporting, what other
market related information would be
helpful that is currently limited or not
accessible?
(14) In what other ways can USDA
support farmers’ ability to adapt to
variability in fertilizer costs? How might
USDA assist small producers in hedging
or otherwise mitigating sudden,
unexpected jumps in the spot price of
fertilizer? How might USDA better
support modes of production that rely
less on fertilizer, or support access to
markets that may pay a premium for
products relying on less fertilizer? How
can USDA further facilitate appropriate
conservation of land, and/or support
farmers’ flexibility in starting up and
sustaining other farm enterprises?
(15) What other tools, investments, or
programs could USDA or other agencies
deploy to enhance the competitiveness
of fertilizer markets? Please suggest any
other actionable steps that USDA or
other agencies could take to help
address any identified concerns.
III. Requirements for Written
Comments
The www.regulations.gov website
allows users to provide comments by
filling in a ‘‘Type Comment’’ field or by
attaching a document using an ‘‘Upload
File’’ field. USDA prefers that comments
be provided in an attached document.
USDA prefers submissions in Microsoft
Word (.doc files) or Adobe Acrobat (.pdf
files). If the submission is in an
application format other than Microsoft
Word or Adobe Acrobat, please indicate
the name of the application in the
‘‘Type Comment’’ field. Please do not
attach separate cover letters to
electronic submissions; rather, include
any information that might appear in a
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cover letter within the comments.
Similarly, to the extent possible, please
include any exhibits, annexes, or other
attachments in the same file, so that the
submission consists of one file instead
of multiple files. Comments (both public
comments and non-confidential
versions of comments containing
business confidential information) will
be placed in the docket and open to
public inspection. Comments may be
viewed on www.regulations.gov by
entering docket number AMS–AMS–22–
0027 in the search field on the home
page. All filers should name their files
using the name of the person or entity
submitting the comments. Anonymous
comments are also accepted.
Communications from agencies of the
United States Government will not be
made available for public inspection.
Anyone submitting business
confidential information should clearly
identify the business confidential
portion at the time of submission, file a
statement justifying nondisclosure and
referring to the specific legal authority
claimed, and provide a non-confidential
version of the submission. The
nonconfidential version of the
submission will be placed in the public
file on www.regulations.gov. For
comments submitted electronically
containing business confidential
information, the file name of the
business confidential version should
begin with the characters ‘‘BC.’’ Any
page containing business confidential
information must be clearly marked
‘‘BUSINESS CONFIDENTIAL’’ on the
top of that page. The non-confidential
version must be clearly marked
‘‘PUBLIC.’’ The file name of the
nonconfidential version should begin
with the character ‘‘P.’’ The ‘‘BC’’ and
‘‘P’’ should be followed by the name of
the person or entity submitting the
comments or rebuttal comments. If a
public hearing is held in support of this
supply chain assessment, a separate
Federal Register notice will be
published providing the date and
information about the hearing.
Melissa R. Bailey,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2022–05670 Filed 3–16–22; 8:45 am]
BILLING CODE P
PO 00000
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Doc. No. AMS–AMS–22–0026]
Competition in Food Retail and
Distribution Markets and Access for
Agricultural Producers and Small and
Midsized Food Processors
Agricultural Marketing Service,
USDA.
ACTION: Notice; request for public
comments.
AGENCY:
On July 9, 2021, President
Biden issued an Executive Order on
‘‘Promoting Competition in the
American Economy,’’ which creates a
White House Competition Council and
directs Federal agency actions to
enhance fairness and competition across
America’s economy. The Executive
Order directs the Secretary of
Agriculture (the Secretary), among other
things, to submit a report on the effect
of retail concentration and retailers’
practices on the conditions of
competition in the food industries. This
notice requests comments and
information from the public to assist the
U.S. Department of Agriculture (USDA)
in preparing the report required by the
Executive Order and advancing policy
steps to promote competition in the
food and agricultural markets.
DATES: Comments must be received by
May 16, 2022.
ADDRESSES: All written comments in
response to this notice should be posted
online at www.regulations.gov.
Comments received will be posted
without change, including any personal
information provided. All comments
should reference the docket number
AMS–AMS–22–0026, the date of
submission, and the page number of this
issue of the Federal Register. Comments
may also be sent to Jaina Nian,
Agricultural Marketing Service, USDA,
Room 2055–S, STOP 0201, 1400
Independence Avenue SW, Washington,
DC 20250–0201. Comments will be
made available for public inspection at
the above address during regular
business hours or via the internet at
www.regulations.gov.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Jaina Nian, Agricultural Marketing
Service, at (202) 378–2541; or by email
at jaina.nian@usda.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On July 9, 2021, President Biden
issued Executive Order 14036,
‘‘Promoting Competition in the
American Economy’’ (86 FR 36987)
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[Federal Register Volume 87, Number 52 (Thursday, March 17, 2022)]
[Notices]
[Pages 15191-15194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05670]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 87, No. 52 / Thursday, March 17, 2022 /
Notices
[[Page 15191]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Doc. No. AMS-AMS-22-0027]
Access to Fertilizer: Competition and Supply Chain Concerns
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice; request for public comments.
-----------------------------------------------------------------------
SUMMARY: On July 9, 2021, President Biden issued an Executive Order
titled ``Promoting Competition in the American Economy,'' which creates
a White House Competition Council and directs Federal agency actions to
enhance fairness and competition across America's economy. The
Executive Order directs the Council and member agencies to ``identify
and advance any additional administrative actions necessary'' to
promote competition on an ongoing basis. The Secretary of Agriculture
(the Secretary) takes note of wide-ranging concern from agricultural
producers regarding access to and pricing of fertilizer. This notice
requests comments and information from the public to assist the U.S.
Department of Agriculture (USDA) in identifying relevant difficulties,
including competition concerns, and potential policy solutions for the
fertilizer market.
DATES: Comments must be received by May 16, 2022.
ADDRESSES: All written comments in response to this notice should be
posted online at www.regulations.gov. Comments received will be posted
without change, including any personal information provided. All
comments should reference the docket number AMS-AMS-22-0027, the date
of submission, and the page number of this issue of the Federal
Register. Comments may also be sent to Jaina Nian, Agricultural
Marketing Service, USDA, Room 2055-S, STOP 0201, 1400 Independence
Avenue SW, Washington, DC 20250-0201. Comments will be made available
for public inspection at the above address during regular business
hours or via the internet at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Jaina Nian, Agricultural Marketing
Service, at (202) 378-2541; or by email at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On July 9, 2021, President Biden issued Executive Order 14036,
``Promoting Competition in the American Economy'' (86 FR 36987) (E.O.
14036). E.O. 14036 focuses on the need for robust and open competition
in the American economy to secure broad and sustained economic
prosperity, promote the welfare of workers, farmers, small businesses,
startups, and consumers, and prevent the threat that excessive market
concentration poses to basic economic liberties and democratic
accountability. With respect to agriculture, E.O. 14036 explains:
Farmers are squeezed between concentrated market power in the
agricultural input industries--seed, fertilizer, feed, and equipment
suppliers--and concentrated market power in the channels for selling
agricultural products. As a result, farmers' share of the value of
their agricultural products has decreased, and poultry farmers, hog
farmers, cattle ranchers, and other agricultural workers struggle to
retain autonomy and to make sustainable returns.
Additionally, E.O. 14017 ``America's Supply Chains'' (No. AMS-TM-21-
0034) (86 FR 20652) (E.O. 14017) directs the Secretary to examine and
address risks to supply chains.
As part of USDA's broad and sustained focus on competition and
supply chain resiliency, the Secretary takes note of wide-ranging
concerns from agricultural producers regarding concentrated market
power in the fertilizer industries. Farmers depend on nitrogen,
phosphate, and potassium (potash) which are key nutrients in
manufactured fertilizer. A handful of fertilizer companies control the
channels through which farmers obtain these nutrients to raise a
productive crop.\1\ In turn, these crops may supply inputs for other
agricultural production enterprises, like livestock.
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\1\ One trading consortium of three production firms and one
U.S. marketing firm control more than one-third of global potash
production. Eight firms account for just over half of global
production capacity in phosphate fertilizers. Fertilizer, comprising
21 percent of total agricultural input sales, is also among the
largest agricultural input markets in terms of sales, with the
largest being animal nutrition (40 percent of total sales).
Fertilizer and crop seed are among the highest input costs per price
received for farmers. Fuglie, Keith O., Paul W. Heisey, John L.
King, Carl E. Pray, Kelly Day-Rubenstein, David Schimmelpfennig, Sun
Ling Wang, and Rupa Karmarkar-Deshmukh, (2011), ``Research
Investments and Market Structure in the Food Processing,
Agricultural Input, and Biofuel Industries Worldwide'', ERR-130,
USDA Economic Research Service, available at https://www.ers.usda.gov/webdocs/publications/44951/11777_err130_1_.pdf?v=8531.8.
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Two companies supply the vast majority of fertilizer potash in
North America.\2\ Four companies supply 75 percent of U.S. nitrogen
fertilizers.\3\ These companies' possession of scarce resources, often
in other countries,\4\ and control over critical production,
transportation, and distribution channels raises heightened risks
relating to concentration and competition.\5\
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\2\ Facts and figures aggregated from various other primary
sources. Kreisle, N., (2020), ``Price Effects from the Merger of
Agricultural Fertilizer Manufacturers Agrium and PotashCorp'', FTC
Bureau of Economics Working Paper #345, available at https://www.ftc.gov/reports/price-effects-merger-agricultural-fertilizer-manufacturers-agrium-potashcorp.
\3\ Bekkerman, A., Brester, G., & Ripplinger, D. (2020), ``The
History, Consolidation, and Future of the U.S. Nitrogen Fertilizer
Production Industry'', Choices, Quarter 2, available at https://www.choicesmagazine.org/choices-magazine/submitted-articles/the-history-consolidation-and-future-of-the-us-nitrogen-fertilizer-production-industry.
\4\ For example, one firm (which acquired the second biggest
North American firm in 2016) in Canada accounted for 20 percent of
the share of global potash mine capacity, followed by other firms in
Russia (13 percent), Belarus (13 percent), and Chinese companies (11
percent).\2\ China, whose government predominates its fertilizer
markets, has by far the largest fertilizer industry in the world,
and accounted for 20 percent of total global R&D in 2006.\1\
\5\ The merged company was estimated in 2016 to control 60
percent of North American potash capacity and 30 percent for
nitrogen and phosphate. (2016), ``Potash Corp, Agrium talk merger;
competition scrutiny expected'', Reuters, available at https://www.reuters.com/article/us-agrium-m-a-potashcorp/potash-corp-agrium-talk-merger-competition-scrutiny-expected-idUSKCN1151UT.
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Additionally, concentration in the fertilizer industry constrains
farmers' options for nutrients. In 1984, many small and medium-sized
firms produced nitrogen fertilizer in quantities that met or exceeded
domestic demand. However, as domestic industry
[[Page 15192]]
consolidated through mergers,\6\ the number of U.S. firms declined from
46 to 13 firms between 1984 and 2008, a reduction of 72 percent.\7\
Research and development (R&D) spending in the fertilizer industry has
remained limited--around 0.21 to 0.25 percent of net sales.\8\ Limited
R&D is concerning given the concentration and depletion of elemental
reserves, some located in politically unstable areas abroad.\9\
---------------------------------------------------------------------------
\6\ In the U.S. the number of companies producing phosphoric
acid dropped from 12 to 7 due to mergers from 2002 to 2008. Three
companies control 80 percent of the production capacity of
phosphoric acid in the U.S. Between 1999-2008, the number of
companies producing muriate of potash fell by half, resulting in two
companies in 2008 owning 100 percent of U.S. potash production
capacity. Wen-Yuan Huang, (2009) ``Factors Contributing to the
Recent Increase in U.S. Fertilizer Prices, 2002-08,'' Agricultural
Resources Situation and Outlook AR-33, U.S. Department of
Agriculture, Economic Research Service, available at: https://www.ers.usda.gov/webdocs/outlooks/35824/10935_ar33.pdf?v=1826.4.
\7\ Prior to the 1980s, U.S. nitrogen fertilizer production by
many small firms met or exceeded total domestic demand. However,
between 1984 and 2008, the domestic industry consolidated, with
larger firms expanding. The number of active ammonia-producing
plants decreased from 59 to 22. In 2018, the four largest U.S.
ammonia producers account for 75 percent of total U.S. output.
Similarly, one merger in 2016 led to the combined company
controlling 60 percent of North American potash capacity and 30
percent for nitrogen and phosphate. (2016)``Potash Corp, Agrium talk
merger; competition scrutiny expected,'' Reuters, available at
https://www.reuters.com/article/us-agrium-m-a-potashcorp/potash-corp-agrium-talk-merger-competition-scrutiny-expected-idUSKCN1151UT.
\8\ David Schimmelpfennig & Keith Fuglie, & Paul Heisey, (2011),
``Private research and development for synthetic fertilizers,'' 67-
74, USDA Economic Research Service available at https://www.ers.usda.gov/webdocs/publications/44951/11777_err130_1_.pdf?v=3767.6.
\9\ The shortage of phosphorus, for example, has prompted some
to term fertilizer a ``geostrategic time bomb.'' Vaccari, David,
(2009), ``Phosphorus Famine: The Threat to Our Food Supply,''
SCIENTIFIC AM, available at https://www.scientificamerican.com/article.cfm?id=phosphorus-a-looming-crisis. See also Schmundt,
Hilmar, (2010), ``Essential Element Becoming Scarce: Experts Warn of
Impending Phosphorus Crisis,'' DER SPIEGEL ONLINE INT'L, available
at https://www.spiegel.de/international/world/essential-element-becoming-scarce-experts-warn-of-impending-phosphorus-crisis-a-690450.html.
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Increasing concentration exposes farmers to a range of pricing-
related risks. Fertilizers, especially nitrogen (N) nutrients, are
already in the top three costs for farmers. Fertilizer costs may swing
dramatically up because of individual or layered world events \10\ such
as strong global demand for agricultural commodities,\11\ rising energy
prices,\12\ export restrictions by major global suppliers,\13\ trade
sanctions,\14\ or war as with the recent Russian invasion of
Ukraine.\15\ Price volatilities may stem from a small number of firms
controlling the few channels for production, transportation,\16\ and
distribution, which may give them the market power to, among other
harms, raise costs for farmers. In 2021, for instance, the prices U.S.
farmers paid for fertilizers increased over 60 percent. Nitrogen
fertilizers prices increased 95 percent, and potash fertilizers
increased over 70 percent. A recent study finds that feed grain farms
in 2022 could face an increase of cost of $128,000 per farm due to
higher fertilizer cost.\17\
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\10\ For example, in 2019, a substantial reduction in Chinese
purchases of U.S. soybeans may have caused Corn Belt farmers to
shift to corn production, which is a more nitrogen-intensive crop.
J. Baffes, & W. Koh, (2019), ''Fertilizer Market Outlook,'' World
Bank Blogs, available at https://blogs.worldbank.org/developmenttalk/fertilizer-market-outlook-potash-prices-rise-2019-urea-and-phosphates-remain.
\11\ In 2020, during the early pandemic, relatively inexpensive
fertilizer relative to crop prices (1.44, compared to .96 average
from 2001-2021) led to strong demand for fertilizers in the U.S.,
Brazil, and China. J. Beghin, L. Nogueira (2021), ''A Perfect Storm
in Fertilizer Markets,'' Department of Agricultural Economics at
Clayton Yeutter Institute, available at https://cap.unl.edu/crops/perfect-storm-fertilizer-markets.
\12\ For instance, natural gas makes up 80 percent of the cost
to produce ammonia for nitrogen fertilizer. Prices for natural gas
are up four to five times higher than normal. Elkin, E., Durisin, M.
(2021), ''Fertilizer Prices Are Getting More Expensive in Europe,
Adding to Food-Inflation Concerns,'' Bloomberg Markets, available at
https://www.bloomberg.com/news/articles/2021-10-29/european-fertilizer-prices-set-to-surge-amid-energy-squeeze?sref=c4HfBhdW.
\13\ China, for example, a key supplier of urea, sulphate, and
phosphate, has moved to curb fertilizer exports. (2021), ''China's
Curbs on Fertilizer Exports to Worsen Global Price Shock, Bloomberg
Markets,'' available at https://www.bloomberg.com/news/articles/2021-10-19/china-s-curbs-on-fertilizer-exports-to-worsen-global-price-shock?sref=c4HfBhdW.
\14\ U.S. and European sanctions against Belarus, for instance,
have halted its fertilizer shipments. Belarus accounts for about 10-
12 million tons of fertilizer exported, or a fifth of global supply.
Elkin, E., Skerritt, J., Ribeiro, T., (2022), ''Fertilizer Markets
Roiled by Belarus Potash Force Majeure,'' Bloomberg Business,
https://www.bloomberg.com/news/articles/2022-02-17/belarus-potash-maker-roils-fertilizer-markets-with-force-majeure?sref=c4HfBhdW.
\15\ Russia accounts for 15 percent of the global trade in
nitrogen fertilizers and 17 percent of global potash fertilizer
exports. Additionally, Russian exports of natural gas, which is a
key ingredient for the production of nitrogen fertilizers, account
for 20 percent of global trade. Ukraine is an important supplier of
cereal, which requires fertilizer. North Africa and the Middle East
import over 50 percent of cereal needs, wheat, and barley from
Ukraine and Russia. Glauber, J. & Laborde, D., (2022), ''How will
Russia's invasion of Ukraine affect global food security?,''
International Food Policy Research Institute, available at https://www.ifpri.org/blog/how-will-russias-invasion-ukraine-affect-global-food-security.
\16\ Transportation costs accounted for 22 percent of the cost
of ammonia shipped from Trinidad and Tobago to the U.S. Gulf (and up
the Mississippi River by barge); and more than 50 percent of the
cost of ammonia shipped from Russia Togliatti to the Gulf. Ammonia
must be transported in refrigerated vessels or pressurized
containers (barge). Because of this and increasing rail rates, the
cost to ship ammonia by rail is 44 percent higher than by barge.
Increasing freight service costs have also contributed to increased
costs of fertilizer.
\17\ ``Economic Impact of Higher Fertilizer Prices on AFPC's
Representative Crop Farms,'' Joe L. Outlaw et al, Agricultural &
Food Policy Center, Department of Agricultural Economic, Texas A&M
AgriLife Research Briefing Paper 22-01, January 2022, available at
https://afpc.tamu.edu/research/publications/files/711/BP-22-01-Fertilizer.pdf.
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As part of executing our responsibilities under the E.O. 14036 and
E.O. 14017, USDA seeks information to assist us in identifying and
addressing competition-related challenges in the U.S. fertilizer market
and other obstacles to producers accessing affordable, responsibly
manufactured fertilizer.
We are further interested in comments as to how the matters raised
may be relevant to promoting fair and competitive markets and local and
regional food systems, creating new market opportunities (including for
value-added agriculture and value-added products), advancing efforts to
transform the food system, meeting the needs of the agricultural
workforce, supporting and promoting consumers' nutrition security,
particularly for low-income populations, supporting the needs of small
to mid-sized and underserved producers and processors, and advancing
environmental stewardship.
II. Written Comments
USDA encourages commenters, when addressing the elements below, to
clearly indicate the question their comments are responding to by
repeating the text of the question before their response. This would
assist USDA in more easily reviewing and summarizing the comments
received in response to these specific comment areas. In addition, USDA
welcomes commenters to refer to, with appropriate explanation, any
views set forth in recently or previously submitted comments, such as
those to E.O. 14017 ``America's Supply Chains'' (No. AMS-TM-21-0034)
(86 FR 20652).
To help USDA identify challenges and solutions in the fertilizer
market, USDA is seeking comments on all aspects of the market structure
for fertilizer as it affects agricultural producers. We are
particularly interested in how fertilizer market challenges affect
small to mid-sized producers.
Our request for comment includes but is not limited to the
following elements. The questions below are meant to stimulate comments
and are not intended to represent particular views of USDA or any other
government
[[Page 15193]]
agency. Commenters should feel free to respond to those they feel most
relevant to them, or as their time and interests permit. Comments may
overlap or be organized as the commenter feels most appropriate. Please
offer descriptive or quantitative information, as available and
relevant.
(1) Please describe challenges and concerns with market
concentration and power in the fertilizer industries, including the
extent of control by any firms over farmers' and business' access to
fertilizer, pricing, availability, transportation and delivery,
quality, and any other contract terms or other factors. Please describe
how these challenges have developed or evolved over time, and any
details on geographic or other divergences within various regions of
the United States or between the United States and international
markets for fertilizer.
(2) Please comment on both long and short-term trends in fertilizer
prices. What role have fertilizer, crop prices, or availability of key
raw materials and manufacturing played in any changes? Has price
volatility increased and if so, what accounts for this increase in
volatility? Please comment on any trends and the relationship of
fertilizer prices to prices of relevant crops, such as corn and
soybeans.
(3) Please share your views on whether the existing fertilizer
market is sufficiently competitive. If you believe it is not, how do
competition problems manifest themselves? For example, is there
evidence of collusion, market manipulation, or other anticompetitive
practices among competitors, buyers of farm products, commodity traders
or related financial firms to fix or alter prices, allocate markets, or
restrict from where a farmer buys inputs and sells product? Is there
evidence of private or public communications by fertilizer companies
relating to price, output or supply that appear to go beyond those
necessary to communicate important information to customers?
(4) What effect have these mergers had on a merged firm's market
power and the ability to squeeze farmers or squeeze out competitors?
Are there indications that firms have made it harder for new fertilizer
firms to start up and grow? Is there evidence that firms have
controlled or reduced supply to keep supply low and prices high? Have
certain mergers allowed the acquisition of technologies or businesses
that produce, transport, or retail fertilizer that competitors rely on,
with the effect of lessening competition? Is there evidence of merged
firms using their market power to price below cost or run losses in
certain segments to undercut competitors or potential new market
entrants?
(5) What role do contractual or sales practices in fertilizer play
with regard to producer access or prices paid to fertilizer? Have
contractual or sales practices changed recently, or over time? Has the
duration of these contracts changed over time and if so, how? Do some
contracts require farmers to buy or use fertilizer from one supplier?
Is there evidence of fertilizer companies preferentially pricing
products differently for some farmers or dealers and not others? To
what extent and in what ways do buyers of farm products influence
farmers' use of fertilizer?
(6) Please describe any requirements or inducements to bundle a
main product (fertilizer) with another product or service, and any
impacts on competition. For instance, does such a practice induce a
farmer's lock-in or allow the firm offering the main product
(fertilizer) with the secondary product (e.g.,: pest management
chemical or seed) to exclude competitors from offering the second
product? What impacts do any of the contractual requirements listed
above or any other contractual or sales practices have on competition?
(7) How do transportation and delivery affect fertilizer
competition and access to fertilizer? For instance, the U.S. receives
imports of fertilizer derivatives through the Gulf of Mexico, and ships
fertilizer product up the Mississippi River. To what extent does market
power by fertilizer or applicable firms over these or other key
transportation channels affect competition and farmer's access to
fertilizer? What risks relating to supply chain, labor or other
disruptions are most relevant?
(8) Please comment on the U.S. agricultural system's reliance on
foreign supply of some fertilizers and global supply chain risks that
could result from trade disruptions. Please comment on how the conflict
in Ukraine may be impacting fertilizer markets. If other supply chain
or trade disruptions have been experienced, please describe the effects
and challenges in dealing with such events. Would greater availability
of domestic or North American options mitigate risks? Would reducing
dependence on suppliers from any one country or region mitigate risks?
What tools might be deployed to achieve those ends?
(9) Please comment on sustainability, climate, and other
environmental concerns and risks relating to fertilizer markets. Have
market concentration and power exacerbated these challenges and risks?
Have they facilitated sectoral adjustment for climate and
sustainability purposes? Would shifting fertilizer production to
countries with high standards on labor and environmental protection
improve competition, better manage sustainability risks, or otherwise
improve public interest outcomes? What other strategies may exist to
raise sustainability standards along supply chains?
(10) What obstacles exist to the financing and development of new
fertilizer capacity that would enhance the competitiveness of
fertilizer markets? Would new or expanded domestic manufacturing,
mining, processing, or alternative fertilizer production capacity help
promote access to and affordability of fertilizer for agricultural
producers? Are there existing ``shovel ready'' manufacturing, mining,
or other processes that could or should be adjusted to facilitate new
fertilizer production? Are there other potential new entrants in the
near or medium-term? How might USDA best support investment in new
fertilizer capacity in the U.S.?
(11) How can USDA further support more efficient use of fertilizer?
Are current precision agriculture tools effective at reducing
fertilizer application rates without impacting yield? Could sub-field
management of application rates improve economic resiliency of farms?
Are there tools that USDA could support to facilitate better
application rates, timing, and appropriate use of existing fertilizer
sources? How could risk management tools such as crop insurance help
with yield gaps from reduced nitrogen application rates, for example?
How could USDA's working lands and other conservation programs better
support more target and efficient use of fertilizer? How might adverse
community, labor, and environmental costs arising from the production
fertilizer in certain geographies be better factored into USDA grants,
loans, or regulatory programs? Are there ways USDA could support more
effective use of other fertilizers (e.g.: manure) from livestock? Could
considering these factors improve competition in certain markets?
Please share your views.
(12) Are there concerns or challenges related to data--e.g., to
collection, privacy, accessibility, control, concentrated market power,
or any other aspect--as it affects affordability, accessibility, and
use of more targeted application of fertilizer? For instance, to what
extent does the expanded application of targeted site-specific crop
management using data from sensors,
[[Page 15194]]
climate readings, or mechanical systems in agriculture impact
competition and farmers' access to fertilizer or other agricultural
inputs? Is there evidence of firms with market power using information
obtained regarding farmers' farming practices to adversely affect
farmers or competitors? Are there ways that USDA or other agencies can
safeguard a farmer's control of data and enhance competition and fair
access?
(13) Please comment on the availability and accessibility of market
information and data for fertilizers. Which public or private sources
do you rely on to receive information on fertilizer prices and other
related markets? Are you able to access timely, accurate, and
comprehensive information on spot prices of fertilizers in local,
regional, and national markets? If not, how can USDA further facilitate
price reporting information and transparency for market participants?
Beyond price reporting, what other market related information would be
helpful that is currently limited or not accessible?
(14) In what other ways can USDA support farmers' ability to adapt
to variability in fertilizer costs? How might USDA assist small
producers in hedging or otherwise mitigating sudden, unexpected jumps
in the spot price of fertilizer? How might USDA better support modes of
production that rely less on fertilizer, or support access to markets
that may pay a premium for products relying on less fertilizer? How can
USDA further facilitate appropriate conservation of land, and/or
support farmers' flexibility in starting up and sustaining other farm
enterprises?
(15) What other tools, investments, or programs could USDA or other
agencies deploy to enhance the competitiveness of fertilizer markets?
Please suggest any other actionable steps that USDA or other agencies
could take to help address any identified concerns.
III. Requirements for Written Comments
The www.regulations.gov website allows users to provide comments by
filling in a ``Type Comment'' field or by attaching a document using an
``Upload File'' field. USDA prefers that comments be provided in an
attached document. USDA prefers submissions in Microsoft Word (.doc
files) or Adobe Acrobat (.pdf files). If the submission is in an
application format other than Microsoft Word or Adobe Acrobat, please
indicate the name of the application in the ``Type Comment'' field.
Please do not attach separate cover letters to electronic submissions;
rather, include any information that might appear in a cover letter
within the comments. Similarly, to the extent possible, please include
any exhibits, annexes, or other attachments in the same file, so that
the submission consists of one file instead of multiple files. Comments
(both public comments and non-confidential versions of comments
containing business confidential information) will be placed in the
docket and open to public inspection. Comments may be viewed on
www.regulations.gov by entering docket number AMS-AMS-22-0027 in the
search field on the home page. All filers should name their files using
the name of the person or entity submitting the comments. Anonymous
comments are also accepted. Communications from agencies of the United
States Government will not be made available for public inspection.
Anyone submitting business confidential information should clearly
identify the business confidential portion at the time of submission,
file a statement justifying nondisclosure and referring to the specific
legal authority claimed, and provide a non-confidential version of the
submission. The nonconfidential version of the submission will be
placed in the public file on www.regulations.gov. For comments
submitted electronically containing business confidential information,
the file name of the business confidential version should begin with
the characters ``BC.'' Any page containing business confidential
information must be clearly marked ``BUSINESS CONFIDENTIAL'' on the top
of that page. The non-confidential version must be clearly marked
``PUBLIC.'' The file name of the nonconfidential version should begin
with the character ``P.'' The ``BC'' and ``P'' should be followed by
the name of the person or entity submitting the comments or rebuttal
comments. If a public hearing is held in support of this supply chain
assessment, a separate Federal Register notice will be published
providing the date and information about the hearing.
Melissa R. Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-05670 Filed 3-16-22; 8:45 am]
BILLING CODE P