NAWG report highlights rising fertilizer costs tied to tariffs 

The National Association of Wheat Growers is drawing attention to the growing financial strain fertilizer tariffs are placing on United States wheat producers. In a newly released report, the organization estimates that countervailing duties on phosphate fertilizer imports added nearly $1 billion in costs for wheat growers between 2021 and 2025. 

NAWG President Jamie Kress said rising input costs continue to challenge farmers’ ability to stay profitable and maintain family operations. 

“Out on the farm, every dollar matters,” Kress said. “When input costs like fertilizer spike, it’s not just a line on a balance sheet—it shapes the decisions we make for our crops, our land, and our families.” 

Tariffs and global supply pressures 

Fertilizer pricing is influenced by a complex global market, but NAWG points to CVD tariffs imposed in 2021 as a key factor driving higher phosphate costs in the U.S. These tariffs were applied to imports from countries including Russia and, most significantly, Morocco. 

Countervailing duties are designed to offset foreign government subsidies that may disadvantage domestic industries. However, NAWG argues they have also restricted supply and increased costs for U.S. farmers. 

Phosphate fertilizer production relies on mined phosphate rock, a critical source of phosphorus—one of the three essential nutrients for crop growth. While the U.S. produces much of its own phosphate rock, domestic supply falls short of demand by roughly 3 million metric tons, making imports necessary. 

Globally, China and Morocco dominate phosphate production. China has limited its role in global trade by restricting exports, including a current ban on phosphate fertilizer exports. Meanwhile, Morocco—home to nearly 70% of the world’s phosphate reserves—has historically been a leading supplier to the U.S. 

Before tariffs were implemented, Moroccan imports accounted for more than half of U.S. phosphate fertilizer supply in many years. Since then, NAWG reports that imports have dropped sharply—from 3.8 million tons between 2016 and 2020 to just 0.2 million tons from 2021 to 2025, with no imports recorded in 2025. 

Financial impacts across agriculture 

Research from the Agricultural and Food Policy Center at Texas A&M University estimates that tariffs on Moroccan phosphate fertilizers increased costs for major U.S. crops—including corn, soybeans, wheat, rice, sorghum, and cotton—by a combined $6.9 billion over five growing seasons. Wheat producers alone accounted for nearly $1 billion of that total. 

According to NAWG’s report, much of the increase is tied to higher prices for diammonium phosphate and similar fertilizers. When tariffs were at their initial level of nearly 20% from 2021 through 2023, DAP prices rose by an estimated 28.6% for U.S. buyers. 

Fertilizer remains one of the largest input expenses for wheat farmers. According to projections from the U.S. Department of Agriculture, fertilizer accounts for about 38% of operating costs and 15% of total costs for wheat production—second only among major field crops. 

NAWG also analyzed how these increased costs vary by state, using data from USDA acreage reports and chemical use surveys. The results show that states with the most wheat acreage have absorbed the greatest financial burden. North Dakota wheat growers experienced the highest added costs at $202 million, followed by Kansas at $141 million and Montana at $120 million. 

However, fertilizer use practices also play a major role. For example, South Dakota and Oregon have similar wheat acreage, but vastly different phosphate application rates. Nearly all South Dakota acres receive phosphate fertilizer, compared to just a fraction in Oregon—resulting in $17 million in added costs for South Dakota farmers versus $4 million in Oregon. 

While global supply disruptions and market forces are beyond farmers’ control, NAWG says tariff policy is not. 

“We can’t control global markets or supply disruptions,” Kress said. “But we can take a hard look at policies here at home that are making it more expensive to grow the food Americans rely on.” 

NAWG is urging policymakers to reconsider countervailing duties on phosphate fertilizers, arguing that rolling them back would provide immediate financial relief to farmers and help maintain the competitiveness of U.S. wheat production. 

Lacey Vilhauer can be reached at 620-227-1871 or [email protected].