This article was originally published at 11:12 p.m. CDT on Monday, June 29. It was last updated with additional information at 6:44 a.m. CDT on Tuesday, June 30.

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OMAHA (DTN) -- President Donald Trump has at least temporarily suspended countervailing duties of up to 16.8% on phosphate fertilizer from Morocco, drawing praise from corn and soybean farmers who have pressed the federal government since 2021 to drop the duties.

Trump on Monday declared the state of domestic phosphate fertilizer production as an emergency under the Tariff Act of 1930 to suspend countervailing duties on Moroccan phosphate for at least eight months. Trump's proclamation, or executive order, stated the administration needed to move now so farmers can buy more affordable fertilizer during the fall for the 2027 planting season.

Countervailing duties were first put in place in 2021 following a petition to the Commerce Department from Mosaic Co., which argued Moroccan and Russian phosphate fertilizers were being unfairly subsidized by their governments. Commodity groups have been locked in a battle of appeals ever since, trying to get the government to overturn the duties on the Moroccan phosphate.

Farmers saw all major fertilizers jump in price at the end of February when U.S. hostilities with Iran began. Prices for MAP and DAP, the two phosphate fertilizers, rose about 7% from February through May. The blocked Strait of Hormuz also stalled sulfur exports and caused sulfur prices to spike, which led Mosaic to idle phosphate production at some facilities as well.

Earlier this month, a collection of 65 state and national farm groups sent a letter to Commerce Secretary Howard Lutnick, calling on him to drop the countervailing duties on phosphate fertilizer imports and "ease the pain felt by farmers as fertilizer prices reach new highs."

In Trump's proclamation Monday, the White House noted domestic phosphate production "is insufficient to support domestic agricultural food production after accounting for exports."

The proclamation added that the federal government "is working with the private sector to expand domestic fertilizer manufacturing capacity, but those efforts will take time to increase the supply materially." To respond now, Trump's proclamation stated immediate action is needed to ensure farmers have access to phosphate fertilizers and to "ensure a stable domestic crop supply, and to meet our food production needs."

That requires boosting imports, and the proclamation noted Morocco "can supply phosphate fertilizers to the United States without disruption at this time."

A study by the Agricultural and Food Policy Center at Texas A&M University estimated the countervailing duties on Moroccan phosphate raised input costs for farmers of corn, soybeans, wheat, rice, sorghum and cotton by roughly $6.9 billion over the 2021 through 2025 growing seasons.

Fertilizer prices reached the point in late May that the Federal Trade Commission (FTC) announced an antitrust investigation into the industry during a meeting in Texas put together by the National Corn Growers Association.

MOSAIC RESPONDS

Mosaic Co. stated Tuesday the U.S. need to maintain and strengthen domestic fertilizer production rather than support higher imports.

"The United States should not rely on foreign countries for critical minerals like phosphate that support our agricultural system and food security. American farmers depend on reliable domestic supply, which is at risk if policies weaken U.S. production."

Mosaic added the company is doing what it can to support American farmers, but the ability to produce phosphate fertilizers is being challenged by limited and unaffordable sulfur supplies. The company stated less U.S.-based sulfur production should be exported, but instead used to meet domestic demand.

"We regret that the countervailing duty (CVD) suspension order was not accompanied by government intervention to provide relief on sulfur," Mosaic states.

Beyond the eight-month suspension of duties, Mosaic said it supports strong enforcement of U.S. trade laws to ensure a level playing field for domestic producers. Mosaic will continue to reaffirm the need for countervailing duties throughout the sunset process.

"The CVDs on imports of phosphate fertilizer from Morocco and Russia are necessary to ensure competitive domestic production and fair trade and decrease U.S. agriculture's reliance on global supply chains," Mosaic stated. "The unfair subsidies received by Moroccan and Russian phosphate producers and the material injury they have caused to the critical domestic phosphate industry have been validated numerous times over the past five years."

FARM GROUPS ELATED

Jed Bower, an Ohio farmer and president of NCGA, thanked Trump "for recognizing the economic outlook facing American farmers right now and taking steps to alleviate some of that pressure." Bower added the reprieve would help in the sunset review for the duties and the antitrust investigation.

"Fertilizer represents one of the biggest expenses for farms every year, only made worse in recent years by actions of companies looking to further consolidate their control of the market," Bower said. "Input prices generally have been incredibly high and are a major contributing factor to the profitability picture, or lack thereof, for corn farmers right now."

The American Soybean Association noted Morocco is the world's second-largest producer of phosphate, so dropping the duties will increase availability and encourage competitive pricing, which ultimately will improve on-farm margins.

"Suspending import taxes on this critical farm resource will improve fertilizer availability and help reduce input costs at a time when farmers begin to plan for the 2027 crop while tackling increasingly challenging financial decisions," said ASA President Scott Metzger, a soybean farmer, also from Ohio. "U.S. soybean farmers thank President Trump and his administration for recognizing the challenges facing America's farmers, identifying targeted solutions to defray farm production costs, and taking meaningful action that will strengthen the agricultural economy."

Amy France, a Kansas farmer and chair of National Sorghum Producers (NSP) also reiterated the president's action "is an important step toward improving access to competitively priced fertilizer as farmers plan for the 2027 crop."

Jamie Kress, an Idaho farmer and president of the National Association of Wheat Growers (NAWG), said the relief provided to farmers is welcome.

"Family farms like mine have been operating on razor-thin margins for several years, and fertilizer remains one of our most significant production expenses," Kress said. "While farmers cannot control global markets or supply chain disruptions, actions like this help reduce input costs and provide greater certainty during periods of volatility."

For more, see "Mosaic Executive Warns Fertilizer Markets Won't Recover Quickly From Strait of Hormuz Closure" here: https://www.dtnpf.com/….

Also see "Farm Groups Press Commerce Secretary to Drop Phosphate Duties" here: https://www.dtnpf.com/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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