For corn farmers like Dee Vaughan, the economics of fertilizer aren’t just a simple line item on the balance sheet; they are immediate, seasonal and deeply tied to whether a crop pencils out.
As a corn grower in the Texas Panhandle, Vaughan says rising input costs have forced tough decisions in recent years, particularly when it comes to phosphate, a cornerstone nutrient for crop production. And he says a key factor behind those higher costs is a federal trade policy now under review. At the heart of the issue, Vaughan says, is access, or lack of it.
That’s why just this week more than 50 state grower groups including the Texas Corn Producers Association, are urging the U.S. Department of Commerce and the International Trade Commission (ITC) to revoke countervailing duties (CVDs) on imported phosphate fertilizers from Morocco and Russia. The groups filed a letter with the Department of Commerce, urging the agency to revoke countervailing duties on imports of phosphate fertilizer as the sunset review begins.
In addition to the letter, corn groups are on Capitol Hill this week, and that push may be gaining traction. On Tuesday, Agri-Pulse reported The Trump administration is weighing temporarily suspending countervailing applied to Moroccan and Russian phosphate.
How the Duties Took Hold
Vaughan says any action to remove those duties wouldn’t just be welcome, it would be a long time coming. He says the current dispute dates back to 2020, when fertilizer manufacturer Mosaic filed a petition alleging Moroccan phosphate imports were being subsidized unfairly. After reviewing the case, the ITC and Department of Commerce imposed countervailing duties on those imports.
“And basically what we have is a situation where The Mosaic Company came to the International Trade Commission and the Department of Commerce back in 2020 and asked for a countervailing duty, a CVD, to be placed on Moroccan fertilizer,” Vaughan says. “They were claiming that Moroccan fertilizer was coming into the United States in an unfair manner.”
He says the ruling reshaped the global fertilizer flow into the U.S. market.
“The ITC and the Department of Commerce reviewed that request and they applied a countervailing duty on Moroccan fertilizer, which effectively locked Moroccan fertilizer out of the U.S. market,” Vaughan says.
That outcome, he says, has had lasting consequences, particularly because Morocco represents one of the world’s most significant sources of phosphate.
“Morocco has the largest phosphate deposits in the world,” Vaughan says. “They have the ability to provide a lot of supply to us while our phosphate rock resources are declining here. They’re not capable of meeting the demand for the U.S. market.”
Supply Constraints Meet Rising Demand
For corn growers, phosphate isn’t optional. It’s essential for root development, plant vigor and yield potential. When supply tightens, growers feel it quickly and often adjust in ways that ripple across the entire agricultural economy.
“We need that access to the Moroccan fertilizer, but we’re blocked off from it by these countervailing duties,” Vaughan says.
Now, five years after those duties were imposed, the policy is entering its required “sunset review,” a process that allows regulators to evaluate whether the measures should remain in place.
That review begins in April, and Vaughan says corn growers see it as a critical opportunity to get the duties removed.
“Five years have gone by since those CVDs were applied, and now they are coming up for mandatory review,” he says. “There will be an opportunity to remove those CVDs.”
Measuring the Economic Impact
The push to remove the duties is backed by economic analysis.
Vaughan says conversations with lawmakers last year helped spur a deeper look at the issue. During meetings in Washington, D.C., Texas Corn raised concerns with members of Congress, including Rep. Pat Fallon, who then commissioned a study by the Texas A&M Ag and Food Policy Center. The results, Vaughan says, were significant.
“What they determined is for the program crops — corn, wheat, grains, oilseeds, rice — it had cost about $6.9 billion over the five years that the CVD has been in place,” Vaughan says.
The analysis released in January of this year added to the growing body of evidence that countervailing duties on phosphate imports have significantly impacted U.S. farmers.
The Texas A&M Food and Agricultural Policy Center report specifically found the CVD increased the price of diammonium phosphate (DAP), a commonly used phosphorus fertilizer, by 28.6% during the period when the duty was set at its full initial rate of 19.97%. That price impact, the study notes, aligns with concerns raised by farm groups and lawmakers, as well as previous academic research.
The study also estimates the higher costs have added roughly $6.9 billion to phosphorus fertilizer expenses for U.S. producers of major crops during the 2021 through 2025 growing seasons, further underscoring the financial burden on agriculture tied to the policy.
“It’s not a silver bullet in itself that if it’s removed it’s going to make phosphate fertilizer much more affordable,” he says. “But at the same time, if we can keep a billion dollars in the farmers’ pockets, that’s a small win that we want to take advantage of.”
Fertilizer Companies Respond
Farm Journal reached out to fertilizer companies for perspective on potential action to remove the countervailing duties on phosphate imports.
In a statement, Nutrien said the evolving global supply and demand landscape for phosphate supports reconsideration of the current policy.
“Based on evolving global phosphate supply and demand dynamics since 2021, we believe removing countervailing duties on phosphate imports would be a constructive step that supports U.S. farmer economics, balanced fertilizer application and agricultural productivity,” Nutrien said to Farm Journal. “Farmers and food security are at the center of everything we do, and we continuously engage with our customers and associations on issues that are important to U.S. agriculture.”
A Broader Policy Question
While Vaughan is advocating for the removal of these specific duties, he says he recognizes the importance of trade enforcement tools more broadly.
“You know, we do have situations around the world where governments subsidize their industries, or they do things that are unfair trade practices,” he says. “And we need to protect U.S. industry in those situations.”
However, he argues this case highlights the risk of unintended consequences.
“We don’t want that CVD process abused when it’s not necessary,” Vaughan says. “And that’s the situation we feel like we’re in now.”
In his view, the duties have outlived whatever purpose they may have served — and are now doing more harm than good.
“We felt like they never should have been applied,” he says. “If you read the case, it’s very complicated, but it also makes you scratch your head and wonder why they even granted these CVDs to start with.”
Taking the Case to Washington
With the sunset review approaching, grower groups are mobilizing to make their case. Texas Corn is in Washington this week, meeting with lawmakers and encouraging them to weigh in with regulators.
“During this review period, there’s an opportunity for ag organizations to make comments and to testify at hearings,” Vaughan says. “There’s an opportunity for Congress to weigh in with the Department of Commerce.”
While the ITC operates independently, it does consider input from affected industries and elected officials.
“They’re charged with listening to the affected industries, which would be agricultural producers,” Vaughan says. “And of course members of Congress have an opportunity to weigh in with how it’s affecting their constituents at home.”
The goal, he says, is to ensure decision-makers understand the real-world impact.
Looking Ahead
For Vaughan and other corn growers, the outcome of the review could shape fertilizer markets — and farm economics — for years to come.
Restoring access to Moroccan phosphate, he says, would reintroduce competition, improve supply and help ease cost pressures across agriculture.
“It’s basically just hurting U.S. industry now,” Vaughan says. “It’s not helping.”
And while Morocco has other markets for its fertilizer, U.S. farmers have fewer alternatives when domestic supply falls short.
“It’s not really hurting the Moroccans per se,” he says. “They’re having to send fertilizer to other places in the world. But it’s hurting U.S. farmers.”
As planting season ramps up, Vaughan says the stakes are clear, not just for growers, but for the entire food system.
“We’re very hopeful that ag organizations and members of Congress take advantage of this situation and weigh in,” he says. “This is an opportunity to fix something that’s been costing agriculture for five years.”