Hunter
04/22/24
Area farmers told the chair of the Federal Trade Commission this weekend to block the sale of Iowa Fertilizer Co to Koch Industries.
The Des Moines Register said that several of the roughly 100 Iowa, Minnesota and Missouri residents attending the Iowa Farmers Union listening session Saturday told Lina Khan, the FTC chair, that consolidation within the agriculture industry — from fertilizer to seed to farm chemicals — is squeezing already slim profits from their operations.
Iowa lawmakers and residents have criticized the sale, which was announced in December. Iowa Ferilizer Co. got around $545 million in local, state and federal economic development incentives and tax benefits a dozen years ago to build the facility. It’s located in Wever, south of Burlington and operates under the name OCI Nitrogen Iowa.
Farmers told Khan that mergers are limiting them to a smaller number of companies they can buy their supplies from and those they sell their crops and livestock to.
The USDA estimates that four companies account for 75% of the supply of the nitrogen used in fertilizer.
Khan was noncommittal, but said the FTC can investigate the merger to see if it will ultimately hurt the farm industry. If they find evidence, the agency can file a lawsuit to block the sale.