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Mar. 9, 2026 by Frank DeMatteo, Yahoo!finance The U.S. Justice Department has launched an antitrust investigation into whether leading commercial fertilizer producers colluded to raise prices, Bloomberg News reported, citing people familiar with the matter, sending shares of the industry's largest players down as much as 2.7% in Wednesday trading. The probe targets CF Industries Holdings Inc (NYSE:CF), Nutrien Ltd (NYSE:NTR), The Mosaic Company (NYSE:MOS), Koch Inc., and Norway's Yara International ASA, which collectively control most nitrogen-based fertilizer sold in the U.S. and dominate potash and phosphate markets. CF Industries fell 2.52% to $103.62, Mosaic declined 2.65% to $26.07, and Nutrien dropped 2.02% to $72.92. The investigation, being run out of the DOJ antitrust divisio's Chicago office, is examining companies pricing practices for possible civil and criminal antitrust violations, according to the sources, who requested anonymity to discuss a confidential matter. The probe is in its early stages. The scrutiny comes after the U.S. fertilizer industry underwent dramatic consolidation over four decades. The number of nitrogen fertilizer producers declined from 46 to 13 between 1984 and 2008, a reduction of 72%, according to USDA data. Today, four firms control 75% of the nitrogen fertilizer market domestically, while two firms control nearly 100% of the U.S. potash market, according to University of Waterloo research. The industry's pricing power became particularly evident in 2021, when fertilizer costs surged dramatically. Prices U.S. farmers paid for fertilizers increased over 60%, with nitrogen fertilizer prices jumping 95% and potash prices rising over 70%, according to USDA figures. The increases added an estimated $128,000 in costs per farm for feed grain operations in 2022. Market concentration measures show exceptionally high levels across all fertilizer types. The Herfindahl-Hirschman Index (HHI) for the U.S. market stands at 2,382 for nitrogen, 4,553 for phosphate, and 3,455 for potash, according to Texas A&M AFPC research. Figures above 2,500 are generally considered highly concentrated. Historical data suggests fertilizer cartels have been particularly harmful to consumers. Research from the American Antitrust Institute found that the median overcharge by hard-core fertilizer cartel members was almost 41%, above the 30% overcharge for all industries from 1702-2010. Tweet |
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