News Release

MARION BERRY

United States Representative

First District, Arkansas

 

 

 

 

FOR IMMEDIATE RELEASE

 

CONTACT: Lillian Pace

July 26, 2006

202-225-4076

 
Berry Introduces Bills to Ease Fertilizer Prices for America's Farmers
 
WASHINGTON, D.C. –  U.S. Representative Marion Berry  (D-AR, 1st) introduced two pieces of legislation today to suspend the import duties on urea and ammonium nitrate fertilizers and lower the price of fertilizer for America's farmers. Experts estimate fertilizer prices could drop by as much as 50% if the International Trade Commission removed existing tariffs and allowed other countries to export urea and ammonium nitrate fertilizers to the United States.

 

"The demand for fertilizer here in the United States far exceeds what we are able to supply through domestic production," said Congressman Berry. "Instead of penalizing America's farmers, it is time to open our market to other countries capable of producing fertilizer at a much lower price. This will not only provide financial relief for farmers all across rural America, put protect the long-term viability of our domestic food supply."

 

Fertilizer prices have increased by 86% since 1990, leaving many farmers struggling to stay in business. The price of fertilizer is directly related to the price of natural gas – which is on the rise in the United States. Since natural gas accounts for 70-90% of the production costs for nitrogen fertilizer, companies in the United States have no choice but to raise fertilizer prices for America's farmers.  

 

Unlike the United States, countries like Russia and the Ukraine have an abundant supply of natural gas at a consistently low price. Fertilizer producers in these countries spent one-twelfth of what producers here in the United States spent for a unit of natural gas last year. Congressman Berry's bills would allow these countries to export large quantities of nitrogen fertilizer to the United States, significantly driving down the price of fertilizer for America's farmers.

 

"The tariffs on fertilizer imports are simply outdated," said Congressman Berry. "Instead of protecting domestic fertilizer producers, they are only driving prices up for our farmers. We need a new system that gives our farmers the best deal for their agricultural products."

 

The International Trade Commission issued tariffs on urea and ammonium nitrate in the late 1980's to protect domestic fertilizer producers. Since then, domestic fertilizer production has plummeted significantly, with the number of domestic producers dropping from 24 in 1987 to just 7 today.

 

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