Amid rising antitrust worries, Koch Industries aims to acquire a key Iowa fertilizer facility, sparking debate among local farmers and policymakers.
Nina Elkadi reports for Civil Eats.
In short:
- Koch Industries plans to buy a major Iowa fertilizer plant for $3.6 billion, raising fears of increased monopolization.
- Local farmers and 18 advocacy groups have expressed concerns, urging federal authorities to review the legality of this acquisition.
- The purchase could affect competition in the already consolidated fertilizer industry, potentially driving up costs for farmers.
Key quote:
“You want competition. That’s what’s going to help drive your fertilizer prices where they should be between supply and demand. And if you don’t have that, well, then [prices] struggle. And then it makes everybody struggle.”
— Joshua Manske, Iowa farmer
Why this matters:
Such a purchase could potentially lead to increased market concentration, which might result in higher prices for fertilizers. This is particularly significant in Iowa, where agriculture plays a crucial role in the state’s economy, and affordable fertilizer is essential for crop production.
For every ton of fertilizer farmers apply to fields in the United States, almost 1,200 pounds is wasted due to inefficiency, with almost 400 pounds of that waste flushing into streams and aquifers.
