A second phosphate cargo has successfully crossed the Strait of Hormuz since the outbreak of the Iran conflict in late February, according to Argus Media — a milestone that signals limited but incremental movement in restarting fertilizer shipments from the Gulf.

The vessel Mdl Toofan loaded approximately 55,000 tonnes of monoammonium phosphate (MAP) at the Saudi port of Ras Al-Khair in late April and transited the strait on May 9–10. The cargo is destined for Rio Grande, Brazil, with an estimated arrival date of around June 5.

The transit is only the second phosphate cargo to pass through the strait since hostilities began on February 28 of this year. The first — a sulfur cargo — was reported just one day earlier, on May 14.

Despite the small number of successful transits, the broader picture remains grim for Gulf-sourced phosphate. Argus Media’s reporting indicates that eight other phosphate vessels remain stranded in the Persian Gulf, unable to exit via the strait due to ongoing conflict risks and war-risk insurance premiums that have soared since February, making many voyages commercially unviable regardless of ceasefire status.

Saudi Arabia’s Ras Al-Khair is home to the world’s largest phosphate export facility, operated by Ma’aden, and serves as a critical origin point for fertilizer exports to South and Southeast Asia, Brazil, and sub-Saharan Africa. The interruption of exports from this facility has contributed directly to the global DAP and MAP price spike seen in the first half of 2026.

Any sustained resumption of phosphate exports through Hormuz would represent a significant bearish development for fertilizer prices globally. For now, however, single-vessel transits remain the exception rather than the rule.

Source: Argus Media

India’s largest state-owned fertilizer procurement company, India Potash Limited (IPL), has issued letters of intent to 14 global suppliers covering 1.3465 million tonnes of diammonium phosphate (DAP), securing the country’s near-term phosphate supply at $930–935 per tonne cost and freight (CFR).

The tender marks one of the largest single DAP procurement exercises India has conducted in recent years, spanning suppliers across Saudi Arabia, Morocco, Egypt, Russia, the United States, Jordan, and South Korea — a diversified sourcing strategy that reflects continued difficulty accessing Gulf-origin phosphate following the outbreak of the Strait of Hormuz conflict in late February.

East Coast Allocations

East coast allotments included volumes from Indagro (40,000t, U.S. origin), Ameropa (15,000t, Korean origin), Samsung (50,000t), Sun International (40,000t, U.S.), Ma’aden (60,000t, Saudi Arabia), Hexagon (50,000t), Fertistream (50,000t, Russia), Agricommodities (245,000t), and Aditya Birla (31,500t, Egypt).

West Coast Allocations

West coast allocations included additional volumes from Indagro, Ameropa (Morocco), Agrifields (Jordan), VB Venture, Sun International, Ma’aden, Quest Group (Russia), Agricommodities, Oasis (Russia), and Midgulf.

Separately, IPL is in discussions with Morocco’s OCP Group for triple superphosphate (TSP), with IPL having entered a counterbid of $710 per tonne cfr versus OCP’s offer — negotiations that remain ongoing.

The procurement scale reflects India’s substantial seasonal phosphate demand ahead of the kharif (summer) planting season, which begins in earnest in the coming weeks. India is the world’s largest importer of DAP, and ensuring adequate stocks at acceptable prices has become a priority for the Ministry of Chemicals and Fertilizers, which subsidizes the product for farmers.

Source: Argus Media

Fertiglobe, the Abu Dhabi–listed nitrogen fertilizer producer jointly owned by ADNOC and OCI (now part of the XRG industrial group), posted a strong set of Q1 2026 financial results despite a 12% decline in own-produced volumes driven by logistical disruptions at the Strait of Hormuz.

The company reported adjusted EBITDA of $342 million for the quarter, up 31% year-on-year, on revenues of $915 million — a 32% increase versus Q1 2025. Adjusted net profit nearly doubled to $145 million, a 98% increase, as significantly higher realized prices more than offset the production shortfall.

The earnings release, published on April 29, credited the strong performance largely to surging fertilizer prices triggered by the Strait of Hormuz conflict, which broke out in late February 2026. With the strait accounting for a significant portion of global fertilizer export flows, the supply disruption pushed urea and other nitrogen product prices to multi-year highs — a market environment that directly benefits Fertiglobe’s remaining export-capable volumes.

Not all operations were equally affected. Fertiglobe’s Egyptian subsidiary EFC operated at 105% of nameplate capacity with zero unplanned downtime during the quarter, helping buffer the impact of volume constraints on UAE-based assets. Meanwhile, the company’s UAE Fertil operation benefited from a reduction in its effective tax rate — cut to 15–20% from a previous 25% — providing an additional tailwind to bottom-line results.

CEO Ahmed El-Hoshy noted that the results demonstrate Fertiglobe’s resilience amid a historically disruptive period for Middle East commodity trade, and that the company continues to optimize production across its Egyptian facilities to compensate for Hormuz-related constraints on its Gulf assets.

Fertiglobe is the world’s largest seaborne exporter of urea and ammonia, operating primarily from Abu Dhabi and Egypt.

Source: Gulf Business

Global urea prices have pulled back sharply from their March highs, with benchmark spot values falling roughly 19% from their monthly peak — though the commodity remains more than 21% above year-ago levels as Strait of Hormuz supply disruptions continue to underpin pricing.

As of May 15, urea was trading at approximately $577 per tonne, according to Trading Economics data, down from a peak of around $714 per tonne reached earlier in the cycle following the outbreak of the Iran conflict in late February. The pullback reflects a combination of demand-side resistance from buyers unwilling to commit at elevated prices, as well as some marginal improvement in supply availability from alternative origins including the former Soviet Union and non-Gulf Middle Eastern exporters.

Despite the correction, prices remain structurally elevated compared to 2025 levels, with year-on-year increases of approximately 22% continuing to weigh on farm input budgets globally.

U.S. Retail Fertilizer Prices (USDA, May 15, 2026)

• Anhydrous ammonia: $1,123.50/t average
• MAP (11-52-0): $1,120.47/t
• Potash (Red): $659/t
• UAN (32-0-0): $800/t

The USDA’s weekly retail survey confirms that the Hormuz-driven price shock has translated fully into U.S. domestic fertilizer markets, with anhydrous ammonia and MAP both exceeding $1,100 per tonne — levels not seen in several years.

Market participants have noted that the recent urea correction does not necessarily signal a sustained downtrend. With the Hormuz blockade still in place, a significant portion of global nitrogen fertilizer production in the Gulf remains impaired, and any seasonal demand uptick — particularly from Southern Hemisphere buyers entering their planting windows later this year — could rapidly reverse the current softening.

Source: Trading Economics / USDA

Australia’s federal government has secured 90,000 tonnes of urea across three separate cargoes under an emergency underwriting scheme designed to support fertilizer imports amid historically tight domestic and global supply.

The announcement, made on May 13 by Agriculture, Fisheries and Forestry Minister Julie Collins, confirms the government is working with fertilizer distributors Incitec Pivot and CSBP to bring the shipments to market through Export Finance Australia (EFA) — a government-backed financing agency being deployed to underwrite the supply risk. The timeline for delivery of the three cargoes was not disclosed.

The scheme is separate from and additional to a previously announced deal by Incitec Pivot to import 250,000 tonnes of urea from Indonesia’s Pupuk Indonesia under a bilateral arrangement.

Domestic urea prices in Australia have surged to approximately A$1,430–1,440 per tonne at Geelong — roughly 72% above pre-conflict levels — as the ongoing blockade of the Strait of Hormuz has disrupted global fertilizer trade routes. Australia imports a large share of its urea from the Middle East and has few domestic sources of supply.

The supply squeeze has also affected import volumes: Australian urea imports fell approximately 20% year-on-year in the January–April 2026 period, leaving some growers struggling to secure stocks for the upcoming planting season.

The use of EFA’s strategic reserve underwriting powers marks one of the Australian government’s most direct interventions in the fertilizer market in recent memory. The scheme effectively has the federal government standing behind the import transaction to encourage commercial participation that might otherwise be blocked by the elevated price and logistics risk of sourcing from alternative suppliers.

Australia depends on imports for the vast majority of its urea and nitrogen fertilizer needs. With domestic grain production cycles approaching and planting windows narrowing, the pressure to restock inventories before the season is intensifying. The reserve scheme underscores the growing pressure on fertilizer-importing nations to take active measures as the Hormuz disruption extends into its third month with no ceasefire in sight.

Source: World Fertilizer

Researchers at the University of Waterloo have developed a nanotechnology-based pesticide formulation intended to enhance the adhesion of agricultural sprays to plant leaves, thereby reducing chemical waste and environmental contamination.

The water-based formulation employs modified cellulose nanocrystals to stabilize pesticide droplets, enabling them to adhere to hydrophobic leaf surfaces even during exposure to rain and wind. The research team reports that this technology reduces splash, rebound, and runoff, which are common with conventional pesticide spraying systems. Initial field trials on cabbage crops, conducted in collaboration with an industrial partner in Singapore, demonstrated enhanced pest control performance while utilizing reduced quantities of pesticide.

Dr. Michael Tam, a chemical engineering professor at the University of Waterloo, stated that the formulation substitutes solvent-heavy delivery systems with a primarily water-based dispersion. According to the researchers, high-speed imaging confirmed that droplets formed a thin, pancake-shaped film upon impact, rather than fragmenting or bouncing off leaves. The stabilization process is based on nanostructured cellulose crystals combined with inorganic and metallic nanoparticles.

The study, titled “Self-assembly of cellulose nanocrystals for splash suppression and enhanced pesticide delivery on hydrophobic surfaces,” was recently published in the Journal of Colloid and Interface Science and ACS Nano. The research team is currently seeking commercial partners to scale and commercialize the technology.

Sources: University of Waterloo, Journal of Colloid and Interface Science study

Global grain markets are heading into the 2026/27 year with tightening supplies as production declines across several major exporters while consumption continues to rise, according to the latest report from the United States Department of Agriculture Foreign Agricultural Service. The report forecasts lower global production for wheat, corn, and rice, driven by weather pressures, acreage shifts, and changing economics for growers.

The agency said global corn production is expected to decline from the previous year’s record, while wheat production is projected to fall sharply after reaching historic highs in 2025/26. Rice production is also forecast lower, although global consumption is still expected to reach a new record. Across all three major grains, inventories are forecast to contract as demand continues to outpace supply growth.

U.S. production declines amid higher fertilizer costs

The USDA said U.S. grain production is expected to fall in 2026/27 as farmers shift acreage toward soybeans because of stronger expected returns and rising fertilizer expenses. Corn output is forecast to decline by 26.1 million metric tons, wheat by 11.5 million tons, sorghum by 1.8 million tons, and rice by 1.0 million tons.

Despite the production decline, the USDA said domestic grain stocks would remain historically robust, though tighter than the prior year. U.S. grain exports are also expected to edge lower due to stronger competition from rival exporters and softer global import demand.

The report linked the acreage shift partly to higher fertilizer costs, underscoring continued pressure on grain growers after several years of elevated input prices.

Wheat market faces broad production cuts

Global wheat production for 2026/27 is forecast at 819.1 million metric tons, down 24.8 million tons from the prior season’s record harvest. The largest declines are expected among major exporters, including the United States, the European Union, Argentina, Australia, Canada, Kazakhstan, and Russia.

U.S. wheat production is projected to fall 21% year over year, while Argentina’s crop is forecast down 25% and Australia’s down 17%.

Even with lower production, Russia is expected to remain the world’s largest wheat exporter, with exports forecast at 47 million tons, supported by strong carry-in stocks.

Meanwhile, wheat imports are forecast to decline across North Africa and the Middle East as local harvests recover. Morocco’s imports are expected to fall by 3 million tons year over year due to improved domestic production, while Turkey and Uzbekistan are also forecast to sharply reduce imports.

Indonesia and Egypt are forecast to remain the world’s largest wheat importers at 12.5 million tons each.

Corn demand remains resilient

Global corn production is forecast at 1.295 billion metric tons, lower than the previous year’s record but still among the largest harvests ever recorded. Declines in the United States and Argentina are expected to be partially offset by larger crops in Brazil and China.

Brazil is forecast to harvest a record 139 million tons of corn in 2026/27, supported by expanding domestic ethanol production. The USDA said Brazilian corn food, seed, and industrial use has more than doubled over the past five years as ethanol capacity expanded.

China is projected to produce a record 307 million-ton corn crop, helping lift total grain production to an all-time high of 604 million tons. The USDA said strong poultry production and steady swine demand are supporting rising corn consumption in China.

Global corn consumption is expected to continue expanding, particularly in South America, South Asia, and Sub-Saharan Africa, where ethanol projects and population growth are increasing industrial and food demand.

The United States is forecast to remain the world’s largest corn exporter despite a projected reduction in exports to 80 million tons from 82 million tons the previous year.

India strengthens position in global rice trade

Global rice production is forecast to decline by 5 million tons to 537.8 million metric tons, mainly due to smaller crops in India, Burma, and the United States. At the same time, global rice consumption is forecast to rise to a record 541.4 million tons, driven by growing demand in India and Sub-Saharan Africa.

India is expected to further consolidate its dominance in the global rice market. Rice exports from the country are forecast to reach a record 25 million tons, accounting for nearly 40% of world trade.

The USDA said India’s large inventories and competitive pricing would allow it to maintain leadership across basmati, parboiled, and standard white rice exports despite lower production.

The report also highlighted growing rice import demand across Sub-Saharan Africa and Southeast Asia, while the Philippines is expected to remain the world’s largest rice importer because of population growth and sustained food demand.

Fertilizer costs remain a key market driver

The USDA report repeatedly linked planting decisions and global trade flows to rising agricultural input costs, particularly fertilizers. Higher fertilizer expenses are contributing to acreage shifts in the United States and continue to influence competitiveness among exporters.

At the same time, expanding biofuel programs are reshaping grain demand patterns in several countries. In Brazil and India, government support for ethanol production is increasing industrial corn use and influencing long-term production growth.

The USDA said that while global grain markets remain adequately supplied overall, the expected decline in inventories and lower production among major exporters could leave markets more vulnerable to weather disruptions and trade volatility in the coming year.

Europe’s professional horticulture industry is experiencing a significant transition as regulators, retailers, and consumers encourage a shift from peat-based growing media. Arevo notes that this move to peat-free substrates reveals a critical weakness in conventional fertilizer systems: nitrogen loss.

The company reports that standard ammonium nitrate fertilizers, designed for peat-based systems, perform poorly in peat-free alternatives such as coir, bark, and wood fiber. In these substrates, over half of the nitrogen is lost after the first watering, and retention drops to approximately 10% after six watering cycles.

Arevo states that this issue threatens both grower profitability and the environmental goals of the peat-free transition. Growers experiencing nutrient losses often increase fertilizer use and irrigation, which can raise runoff and production costs.

“A combination of EU climate law, biodiversity regulation, corporate disclosure requirements and national bans has created structural pressure on peat extraction and use,” said Niklas Astrom. “But the nutrition systems currently being used were designed for peat, not for modern peat-free substrates.”

Growers face inconsistent performance from peat alternatives

The move away from peat has accelerated in ornamental horticulture, nursery production, and increasingly in food crop cultivation. However, growers report inconsistent performance from peat-free products, especially regarding water retention, nutrient stability, and crop uniformity.

Peat has historically offered a stable, moisture-retentive, and uniform growing environment. Alternative substrates require changes to watering schedules and fertilization strategies due to their different properties.

Arevo notes that these challenges have increased skepticism among commercial growers, who are also facing higher substrate costs and inconsistent crop performance.

“The peat-free transition has a nitrogen retention problem that growers are trying to compensate for with more frequent topups, higher application rates, and increased runoff,” Astrom said. “This is a category-level issue, not a product-level one.”

Arevo positions Arginex as alternative nitrogen technology

Arevo is promoting its patented nitrogen technology, Arginex, as a solution specifically developed for peat-free systems.

The product uses arginine phosphate nutrition and is formulated to bind to negatively charged substrate particles, reducing nutrient leaching during irrigation. The company reports that independent trials across Europe showed Arginex retained nearly 80% of its nitrogen after six leaching cycles in commercially available peat-free substrates, which is about seven times higher than conventional fertilizers.

The technology is non-living and has a shelf life of up to five years. Arevo states this reduces complications linked to biological additives, including cold-chain logistics, storage management, and batch variability.

Arginex is already used commercially in forestry planting, forest nurseries, and seed treatment for crops such as soybeans, corn, and winter wheat in Europe. The company states the product is CE-certified and backed by more than 70 patents and over a decade of research into nitrogen uptake and nutrient efficiency.

Industry searches for scalable peat-free solutions

The debate over peat alternatives has intensified as European policymakers strengthen environmental standards related to carbon emissions and biodiversity protection. Peatlands are major carbon sinks, and extraction restrictions are reshaping substrate supply chains across Europe.

Manufacturers are also under pressure to provide peat-free products that maintain crop performance and meet sustainability expectations from retailers and consumers.

Arevo plans to market Arginex as both a standalone branded nutrition product and as an ingredient in third-party substrate formulations labeled as “powered by Arginex.”

Arevo and the challenge of peat-free nutrition

AgTech startups face a more challenging fundraising market in 2026 as venture investors become increasingly selective, despite ongoing demand for technologies that improve food security, farm productivity, and environmental sustainability.

According to Crunchbase, agriculture and farming startups raised about $1.4 billion through May 7, positioning the sector to match or slightly trail the $4.4 billion raised in 2025 and $4.6 billion in 2024. Funding remains well below the record $10.5 billion raised across 1,419 deals in 2021.

The number of deals is declining more sharply than total funding. Agtech startups completed 187 deals year-to-date, compared with 784 in 2025 and 1,038 in 2024. This indicates that investors are concentrating capital in fewer companies that demonstrate commercial traction and scalable technologies.

Investors are prioritizing automation and AI-enabled platforms as agriculture faces pressure to improve yields, lower costs, and reduce environmental impact. Analysts note that agricultural AI is advancing beyond predictive analytics toward autonomous farm operations, where software systems directly coordinate field activities.

Among the largest financings this year, New Zealand-based Halter raised $220 million in a Series E round led by Founders F,uvaluing the company at more than$2 billion. The company develops smart cattle collars for virtual fencing and real-time livestock monitoring.

Boston-based Tomorrow.io secured $175 million in Series F financing in February to expand its climate forecasting and weather intelligence platform. France’s Hynaero raised $135.2 million for its amphibious wildfire suppression aircraft, while UK-based Tropic Biosciences closed a $105 million Series C round focused on gene-edited crops.

Indian companies also featured prominently among the sector’s largest transactions, with Arya Collateral, WayCool, and Varaha each securing major financings in 2026.

The sector’s exit environment has shifted toward strategic acquisitions rather than public listings. John Deere acquired autonomous spraying company GUSS Automation in 2025, while indoor farming company Growcer agreed to acquire container farming business Freight Farms.

Consolidation continued into 2026. BASF Agricultural Solutions announced plans to acquire biological pest control developer AgBiTech in January, while cannabis ERP platform Canix acquired cultivation management software provider Trym.

Several established agtech startups, including Farmers Business Network, Indigo and Monarch Tractor, continue to be viewed as potential IPO candidates, although public market timelines remain uncertain as investors maintain a cautious stance toward venture-backed growth companies.

Source: Crunchbase News

PepsiCo has finalized three separate offtake agreements for low-carbon ammonia fertilizers, covering its North American potato supply chain, global markets and European farm programs — a combined commitment of more than 345,000 tonnes per year by 2030, according to the Ammonia Energy Association.

The first deal, announced April 23, pairs PepsiCo with CF Industries for lower-carbon urea ammonium nitrate (UAN) for Frito-Lay potato growers in the United States. CF Industries produces the certified low-carbon UAN at its Donaldsonville, Louisiana facility using carbon capture and sequestration and nitric acid plant emissions abatement, verified under the Fertilizer Institute’s Verified Ammonia Carbon Intensity Program.

The second agreement, with TalusAg and announced May 5, covers 30,000 tonnes per year of low-carbon ammonia — with an option to purchase a further 41,000 tonnes — for PepsiCo’s European, Sub-Saharan African and Asia Pacific operations. TalusAg operates modular green ammonia systems in Boone, Iowa; Nairobi, Kenya; and planned sites in Minnesota. The environmental attributes are verified through a book-and-claim model backed by tokenized Environmental Attribute Certificates managed by S3 Markets — which the companies described as the world’s first tokenized ammonia fertilizer EACs.

The third agreement, with Fertiberia, covers renewable fertilizer sourced from Fertiberia’s Impact Zero plant in Puertollano, Spain, across approximately 400,000 acres of European farmland where PepsiCo sources corn and potatoes.

Including a separate Yara agreement for 165,000 tonnes per year in Europe and an undisclosed volume in Latin America, PepsiCo expects roughly 50% of its European fertilizer supply chain to run on low-carbon ammonia by 2030. “This agreement helps create a strong demand signal for low emissions ammonia while supporting both more stable input economics for growers and the long-term transition of the fertilizer market,” said Margaret Henry, PepsiCo VP of Sustainable and Regenerative Agriculture.

The deals represent one of the largest corporate commitments to low-carbon fertilizer procurement to date and are structured around both physical supply and market-based certification mechanisms — the latter allowing near-term action while physical low-carbon logistics continue to develop.

Source: Ammonia Energy Association

Syngenta acquired Intrinsyx Bio, a California-based startup specializing in nutrient use efficiency (NUE) biological products, the company announced on May 6, accelerating its push to become the global leader in agricultural biologicals.

Intrinsyx Bio develops microbial products that improve plants’ ability to extract nitrogen from applied fertilizers, reducing waste and potentially cutting total input requirements per acre. Its primary commercialized product is NUELLO® iN, a biological seed treatment currently sold in the United States, United Kingdom, Benelux and Iberia. Syngenta said the deal gives it “full access to Intrinsyx Bio’s portfolio” and a platform to scale those products into additional geographies and application methods, including foliars and in-furrow treatments.

Syngenta described NUE as “the fastest-growing market segment in biologicals” and said the acquisition fits its strategic goal of reinforcing a world-leading position in that category. The move builds on an earlier collaboration between the two companies that first brought NUELLO® iN to market under the Syngenta Biologicals commercial umbrella.

Financial terms were not disclosed. The deal continues a pattern of targeted bolt-on acquisitions for Syngenta Biologicals, which has been systematically expanding its portfolio across biostimulants, biocontrol and micronutrients. The group said the Intrinsyx acquisition aligns with its “Sustainability Priorities” goal of enabling higher crop yields with lower environmental impact.

The timing is significant. With nitrogen fertilizer prices running 40% above pre-war levels and farmers actively looking to reduce applications without sacrificing yield, NUE biologicals that demonstrably stretch the nitrogen dollar have a stronger commercial case than at any point in recent years. Syngenta’s global distribution network gives Intrinsyx’s technology a runway that it could not have built independently.

Bioceres Crop Solutions posted a net loss of $10 million in its fiscal third quarter ended March 31, 2026, as total revenues from continuing operations fell 23% year-on-year to $39.4 million, the company reported on May 11.

Gross profit declined 30% to $12.7 million, with a gross margin of 32%, reflecting lower revenues and a non-recurring inoculant inventory obsolescence charge related to normalization efforts during the period. Adjusted EBITDA was negative $0.6 million, essentially breakeven. SG&A expenses fell 16% year-on-year as the Rosario, Argentina-based company continued a cost-reduction program.

Crop Protection revenues of $24.6 million slid 18% on softer demand for adjuvants, ongoing channel inventory adjustments and competitive pressure in certain product categories. Seeds revenues also declined as Bioceres transitions toward an asset-light model, reducing working capital intensity. The one bright spot was Crop Nutrition, which grew 15%, driven by microbeaded fertilizer products.

Bioceres’ Pro Farm Group — which was foreclosed and auctioned in January 2026 — has been classified as discontinued operations and is excluded from these results. The company said it is pursuing refinancing, asset disposal and a three-year plan to restore profitability, while legal remedies related to the Pro Farm foreclosure continue.

The 15% growth in Crop Nutrition is the clearest signal of where Bioceres sees structural demand. Microbeaded fertilizers — which improve nutrient placement and uptake efficiency — are gaining traction among growers managing tighter input budgets. Stabilizing that segment while Crop Protection works through channel inventory will be the key test for the next two quarters.

The Senate Agriculture, Nutrition and Forestry Committee held its first dedicated hearing on the U.S. fertilizer industry on May 12, taking testimony from farmers, commodity group leaders and the head of the Fertilizer Institute as lawmakers pressed for action on pricing transparency and domestic production capacity.

Senator John Boozman (R-AR) chaired the session at 106 Dirksen Senate Office Building. Ranking Member Amy Klobuchar (D-MN) called for passage of two bipartisan bills: the Fertilizer Transparency Act — co-authored with Senator John Thune (R-SD) — which would require USDA to publish weekly fertilizer price data from manufacturers, and the Homegrown Fertilizer Act, co-authored with Senator Roger Marshall (R-KS), which would create a USDA grant and loan program for domestic production and storage expansion.

Witnesses included Trent Kubik, president of South Dakota Corn Growers; Eddie Melton, president of the Kentucky Farm Bureau; Corey Rosenbusch, president and CEO of the Fertilizer Institute; and Joshua Westling, CEO of J. Westling & Co. Their testimony emphasized that four companies controlled 77% of U.S. nitrogen fertilizer sales in 2024, leaving farmers with limited market information and few supply alternatives when disruptions hit.

The hearing opened against a backdrop of urea at $865 per tonne, anhydrous ammonia at $1,116 per tonne, and DAP at $914 per tonne — all elevated by the U.S.-Iran conflict and the partial closure of the Strait of Hormuz since late February. The American Farm Bureau Federation told the committee that 86 farms filed for Chapter 12 bankruptcy in Q1 2026 alone, and that USDA’s forecast for total U.S. farm production expenses in 2026 stands at a record $478 billion, calculated before the latest fertilizer and fuel price surge.

Klobuchar said the Department of Justice had opened an antitrust probe into the fertilizer sector in March and the Supreme Court and U.S. Court of International Trade had both ruled against the administration’s use of tariff authorities, adding to the legal and policy pressure on input markets. “We know there are many reasons that fertilizer prices are astronomically high,” she said in her opening statement.

Key Facts About the U.S. Senate Fertilizer Hearing

Source: U.S. Senate Agriculture Committee

The U.S. Department of Agriculture has revoked the approved lender status of 10 financial institutions in its Rural Development OneRD Guaranteed Lending Program, citing “irresponsible and noncompliant” lending practices associated with a significant portion of delinquent loans.

Agriculture Secretary Brooke Rollins stated these lenders are barred from further participation in USDA guaranteed lending programs as the administration strengthens oversight of federally backed rural financing. The USDA reports the affected lenders hold approximately $620 million in delinquent loans, or about 47% of all delinquencies in the Rural Development portfolio.

The lenders removed from the program are BOM Bank, Byline Bank, Celtic Bank, Community Bank & Trust – West Georgia, Genisys Credit Union, Greater Nevada Credit Union, North Avenue Capital, Optus Bank, U.S. Eagle Federal Credit Union, and ReadyCap Commercial. The USDA stated this action aims to improve program integrity and focus support on the more than 750 remaining lenders in the OneRD Guaranteed Lending Program.

USDA Rural Development administers loan, grant, and loan guarantee programs to support economic development and infrastructure investment in rural America, including broadband, utilities, transportation, healthcare, housing, and business development.

ICL Group posted $2 billion in Q1 2026 consolidated sales, up 14% from $1.8 billion a year earlier, and raised its full-year adjusted EBITDA guidance by $100 million to a range of $1.5 billion to $1.7 billion, the company reported on May 13.

Adjusted EBITDA for the quarter rose 15% to $412 million. Net income attributable to shareholders reached $126 million, or $0.10 per share, up from $91 million in Q1 2025. Adjusted diluted EPS grew 22% to $0.11.

The Industrial Products unit outperformed on pricing power in bromine, while the Phosphate Solutions segment benefited from stronger commodity fertilizer markets — conditions the Tel Aviv-based group attributed in part to supply disruptions linked to the U.S.-Iran conflict and the partial closure of the Strait of Hormuz. Revenue growth was distributed across all four business segments.

The quarter also recorded ICL’s first contribution from Bartek Ingredients, a specialty chemical maker acquired in January to expand the company’s footprint in the North American food additives market. Net financial liabilities increased to $2.57 billion at quarter-end, reflecting debt taken on for that acquisition. ICL maintained its 2026 potash sales volume guidance at 4.5 million to 4.7 million tonnes.

The raised guidance signals management confidence that high bromine and potash prices will persist through the year, even as higher sulfur and raw material costs partially offset gains and currency headwinds from the shekel-dollar exchange rate linger. The company said it expects to continue expanding in specialty crop nutrition and specialty food solutions, with the Bartek integration adding steady earnings support from Q2 onward.

Source: Grafa

Senator Roger Marshall (R-KS) introduced legislation on April 28 to eliminate all tariffs and countervailing duties on phosphate fertilizer imports from Morocco, aiming to restore competitively priced DAP and MAP supply for U.S. growers facing the highest phosphate input costs in years.

The bill — the Lowering Input Costs for American Farmers Act — is co-sponsored by Senators Chuck Grassley (R-IA), Cindy Hyde-Smith (R-MS) and Joni Ernst (R-IA). If enacted, it would eliminate Morocco-specific tariffs within seven days and revoke the countervailing duty (CVD) order within four business days.

The CVD order was imposed in April 2021 after Mosaic alleged that Morocco’s state-owned OCP Group received unlawful government subsidies that allowed it to undercut domestic producers. The original rate of 19.97% was subsequently revised to 16.60%, then cut to 2.11% in January 2026 after the U.S. Court of International Trade found that a key Moroccan tax program was not specific to OCP and therefore not countervailable. The U.S. government then dropped its Federal Circuit appeal, and a five-year sunset review is now underway at the Department of Commerce.

A study by the Agricultural and Food Policy Center at Texas A&M University estimated that the CVDs increased fertilizer costs for U.S. farmers by $6.9 billion across the 2021-2025 growing seasons. U.S. imports of DAP and MAP from Morocco averaged just 182,300 tonnes per year during that period, down from a record 1.85 million tonnes in 2018. If the duties were eliminated, phosphate fertilizer prices for U.S. farmers could fall by more than 20%, or roughly $150 per short ton, according to estimates cited by the senator’s office.

The bill is supported by the National Corn Growers Association, American Soybean Association, American Farm Bureau Federation, National Cotton Council, USA Rice and the National Association of Wheat Growers. USDA Secretary Brooke Rollins has confirmed the administration is weighing the duties, calling the internal debate one with “varying views.”

“Kansas farmers are getting hit by a fertilizer market that’s working against them,” Marshall said in the announcement. “This bill removes duties that are driving up costs for farmers, and puts money back in the hands of the people feeding this country.”

The legislation’s chances hinge on whether the Trump administration — which has otherwise expanded tariff authority broadly — will make an exception for a product where domestic producer interests (Mosaic) are directly opposed to farmer interests. That tension is being litigated simultaneously in the Commerce sunset review, in Congress, and in the court of public opinion as input costs bite during planting season.

CF Industries named Andrew T. Scribner as executive vice president and chief financial officer on May 5, effective May 26, bringing in a senior finance executive from outside the agricultural sector to lead the company’s balance sheet as it executes a $4 billion blue hydrogen and ammonia complex in Louisiana.

Scribner, 47, joins from Kimberly-Clark, where he most recently served as vice president, global controller and head of corporate finance planning and analysis, and previously as CFO for Kimberly-Clark North America. He spent more than a decade at The Kraft Heinz Company and its predecessor Kraft Foods Group in finance roles of increasing responsibility, and held CFO positions at Gap for the Banana Republic and Athleta brands.

Scribner will report to president and CEO Christopher D. Bohn and join CF Industries’ senior leadership team. His compensation package includes an annual base salary of $675,000, a target bonus of 80% of salary, a $140,000 sign-on payment, and a $2 million long-term equity award split between restricted stock units and performance-based units tied to return on net assets and total shareholder return.

“He is a disciplined, focused, and hands-on finance leader, and we believe his operational experience and strategic perspective will support our continued growth,” Bohn said.

The appointment comes at a pivotal moment for CF Industries. The company earlier this year began construction on its $4 billion blue hydrogen and ammonia complex at Donaldsonville, Louisiana, backed by a $1.5 billion Department of Energy loan guarantee. CF Industries reported record Q1 2026 profit in May, doubling earnings year-on-year as nitrogen supply tightened. Scribner’s arrival will coincide with the ramp-up of capital allocation decisions for the Donaldsonville project and potential further investment in the company’s low-carbon product strategy.

A vessel carrying approximately 50,000 tonnes of granular sulfur destined for Morocco’s Jorf Lasfar phosphate complex transited the Strait of Hormuz between May 1 and 6, according to AIS tracking data from Kpler cited by Argus Media — the second phosphate-linked cargo to successfully cross the strait since the US-Iran conflict began on February 28.

The shipment was sailing under usual quarterly contracts and had been delayed by the effective closure of the strait. The cargo is expected to arrive at Rio Grande, Brazil, where it is bound under the same contracts. Eight other vessels carrying phosphate-related materials loaded at Ras Al-Khair, Saudi Arabia, remain in the Persian Gulf awaiting passage. Analysts estimate close to one million tonnes of sulfur is currently loaded and waiting, of which roughly 60–70% is tied to existing contracts and the balance likely to enter the spot market once navigation becomes safer.

Sulfur is a critical input for the phosphate fertilizer manufacturing process — it is converted to sulfuric acid, which is needed to process phosphate rock into DAP, MAP, and TSP. Kuwait’s state-owned KPC set its May Kuwait Sulfur Price (KSP) at $765 per tonne FOB, up $195 per tonne from April, a move that reflects both supply scarcity and the elevated risk premium on Gulf cargoes.

Indian DAP producers are particularly exposed. Even if the strait reopens fully, Argus analysts warn that disruptions to global raw material supply chains will take months to dissipate, increasing India’s reliance on finished DAP imports to meet demand ahead of the kharif season starting around the end of Q3. The reappearance of individual transits signals that passage is possible but far from routine — and insurance, freight, and security costs continue to add materially to delivered fertilizer prices.

Approximately 70% of US farmers surveyed by the American Farm Bureau Federation said they could not afford all the fertilizer they needed for the 2026 planting season, according to a poll of more than 5,700 producers conducted April 3–11.

The survey, the first major data point on fertilizer affordability since the Strait of Hormuz blockade began in late February, found sharp regional differences. Southern farmers were hardest hit — 78% reported being unable to afford full fertilizer inputs — compared to 48% in the Midwest, where higher pre-booking rates provided more price protection. Northeast and Western producers also reported significant challenges, at 69% and 66% respectively.

The Farm Bureau attributed the disparity to pre-booking patterns: 67% of Midwestern producers had secured fertilizer early in the season, compared to only 19% of Southern farmers. Because smaller farms are less likely to lock in purchases in advance, they are more exposed to in-season price spikes — a structural disadvantage that worsens when supply shocks hit at planting time.

Farm diesel prices increased 46% since the end of February, compounding the strain from fertilizer costs. Nearly six in 10 farmers reported worsening finances. Chapter 12 farm bankruptcy filings — designed for family-sized agricultural operations — rose 46% in 2025, the third consecutive annual increase, according to AFBF data, with the Midwest and Southeast seeing the sharpest increases.

The Farm Bureau called on the administration to extend safe-passage protections for fertilizer shipments through key global shipping lanes and to prioritize fertilizer supply security as an element of national security. The first USDA cost-per-acre data accounting for post-crisis fertilizer and fuel prices is expected in the coming weeks, according to AFBF’s Faith Parum, and will provide the clearest picture yet of how the disruption is expected to weigh on farm profitability in 2026 and 2027.

India’s fertilizer ministry has recommended that national fertilizer companies pool their procurement by forming a three-month buying consortium to aggregate demand for DAP, MOP, NPS/NPK blends, and key raw materials including ammonia, sulfur, phosphoric acid, sulfuric acid, and phosphate rock.

The directive, reported by Argus Media, represents a significant change in India’s import strategy for phosphate and potash fertilizers, where domestic producers depend almost entirely on imported raw materials. The first step under the consortium model was IPL’s industry-wide tender to purchase 1.2 million tonnes of DAP and 400,000 tonnes of granular TSP, using the same procurement structure as for urea imports.

India is one of the world’s largest importers of phosphate fertilizer and is highly vulnerable to supply disruptions from the Strait of Hormuz blockade. Domestic DAP producers face limited supplies of ammonia and sulfur, both largely sourced from the Gulf, which restricts their ability to increase output at the start of the kharif season. TSP stocks declined to 374,000 tonnes at the end of April as sales exceeded arrivals, according to Argus data.

The consortium model allows smaller companies to gain negotiating power similar to IPL, which has traditionally used bulk tenders to secure competitive urea prices. The ministry expects this approach to enhance supply security and improve pricing during the current crisis. In the 2025–26 crop year, India consumed over 65 million tonnes of fertilizer nutrients, importing most of its phosphate and potash needs. The next test will be whether suppliers accept IPL’s counterbids in the DAP tender at $930–935 per tonne CFR, with negotiations open through May 11.

The Trump administration unveiled a sweeping multi-agency fertilizer initiative on April 29, setting targets to expand US nitrogen production capacity by 30%, domestic potash output by more than 100%, and domestic phosphate capacity by 200% over the next one to two years.

Agriculture Secretary Brooke Rollins announced the plan at a press conference in Washington alongside cabinet officials from the EPA, Department of Energy, Department of Commerce, and Department of the Interior, plus White House economic adviser Kevin Hassett. The rollout came after Rollins flagged the initiative at a Missouri farm visit the prior Friday, where she told producers that urea prices had risen 50% and ammonia was up more than 30% since the Iran conflict began in late February.

Immediate measures already in place

Several short-term steps are already operational. The administration extended its waiver of the Jones Act — a maritime law that requires goods shipped between US ports to travel on US-flagged vessels — by an additional 60 days, giving fertilizer distributors more flexibility to move product between domestic ports. The Treasury Department separately waived certain restrictions on US entities purchasing petrochemicals, including fertilizer, from Venezuela; one anticipated shipment is expected to fill roughly 57% of the US urea supply gap for the April–June period, according to administration officials.

In September 2025, USDA signed a memorandum of understanding with the Department of Justice to strengthen antitrust enforcement in agricultural input markets. USDA Deputy Secretary Stephen Vaden said at the April 29 press conference that two companies currently control roughly 90% of key fertilizer inputs and that DOJ and the Federal Trade Commission are both actively issuing questions to fertilizer companies and examining pricing practices. “It’s public knowledge they are investigating the fertilizer markets,” Vaden said.

Longer-term capacity investment

On the supply side, Rollins announced that fertilizer projects investing over $1bn in US infrastructure may be eligible for assistance from the Department of Commerce’s investment accelerator, which oversees $750bn in available financing. The Department of Energy’s energy dominance financing program has already provided a $1.5bn loan for an Indiana ammonia project. EPA, Commerce, the Department of the Interior, and the Army Corps of Engineers are also accelerating permitting for fertilizer plant construction, with Rollins describing a goal of compressing timelines from years to “weeks or perhaps months.”

The administration identified several fertilizer plants already under construction or awaiting permits that could be accelerated through federal stimulus. Natural gas — the primary feedstock for nitrogen fertilizer — is abundant domestically, and Rollins argued that this gives the US a structural advantage. “We are flush with liquid natural gas,” she said, “and that is going to help spur more long-term production.”

Rollins also confirmed that USDA will deploy a $900mn Rural Development fund — created under the Biden administration — for fertilizer projects, though she said more work is needed to accelerate the timelines of the $700mn already committed.

Industry backdrop: structural vulnerability on display

The announcement reflects years of concern about US reliance on foreign fertilizer supply. The Strait of Hormuz closure — which has disrupted roughly one-third of globally traded fertilizers since late February — has exposed a concentrated supply chain: the Gulf region accounts for nearly half of global urea exports and around 30% of ammonia. US farmers, who typically pre-book fertilizer well in advance, found themselves exposed to spot market price spikes at the worst possible time in the planting calendar.

A survey by the American Farm Bureau Federation, conducted April 3–11, found that approximately 70% of responding farmers could not afford all the fertilizer they needed for the 2026 season. Southern producers were most exposed — 78% reported being unable to afford full inputs — compared to 48% in the Midwest, where higher pre-booking rates offered more protection.

Anhydrous ammonia prices climbed above $1,100 per ton at the end of April, roughly 30% higher than at the end of February, according to DTN’s weekly retail fertilizer trends report. Josh Linville, vice president of fertilizer at StoneX, noted that gas plants in Qatar and Iran supplying nitrogen production facilities have sustained damage from missile and drone strikes, meaning the supply recovery will be measured in months, not weeks. “Once we get that going, we’ve got to get liquified natural gas production back up and running, and once that starts getting to the fertilizer plant, we’ve got to restart the fertilizer,” he said.

What to watch next

The capacity targets — 30% nitrogen expansion, 100% potash doubling, 200% phosphate growth — are aspirational without named projects or funding commitments attached. Washington analyst Jim Wiesemeyer said the plan would likely need grants, tax incentives, and loan guarantees beyond existing USDA programs to be effective, while noting that imports will still be essential, particularly for potash from Canada. The DOJ and FTC investigations into fertilizer pricing represent an additional policy lever that could, over time, affect how companies set prices — but enforcement timelines in antitrust cases are typically measured in years.

ATOME, the British developer of green fertilizer projects, has reached final investment decision (FID) on its $665mn low-carbon fertilizer plant in Villeta, Paraguay — the world’s first industrial-scale facility of its kind to clear that milestone.

The Villeta plant will produce 260,000 tonnes per year of low-carbon calcium ammonium nitrate (CAN-27) using 100% renewable baseload hydropower from Paraguay’s Itaipu dam, which co-owns the world’s second-largest hydroelectric station with Brazil. Because the facility runs on hydropower rather than natural gas, it is structurally insulated from fossil fuel price swings — including the nitrogen price spike triggered by the US-Iran conflict and Strait of Hormuz disruption.

The entire Villeta production output is committed under a binding 10-year offtake agreement with Yara International, which will market the fertilizer as part of its Climate Choice product line. Swiss engineering firm Casale will serve as EPC contractor on a fixed-price lump-sum basis.

Project financing comprises $420mn in debt coordinated by IDB Invest, with participation from the International Finance Corporation, European Investment Bank, FMO (the Dutch development bank), and the Green Climate Fund. The $245mn equity investment is led by Hy24, the world’s largest low-carbon hydrogen asset manager. ATOME’s shareholders are expected to ratify the FID in May 2026. Construction is set to begin shortly, with commercial operations targeted by October 2029 at the latest. Over its lifetime, the plant is projected to displace 500,000 tonnes of CO₂e annually.

Olivier Mussat, CEO of ATOME, called the FID a “defining achievement” and described Villeta as a replicable blueprint for fossil-fuel-free fertilizer production at industrial scale in emerging markets. ATOME has indicated plans to replicate the model in other countries with abundant renewable power and large fertilizer import dependencies.

Key facts about the ATOME Villeta project

Nutrien delivered adjusted EBITDA of $1.11bn in the first quarter of 2026, driven by record potash sales volumes and higher global benchmark prices, but its stock fell more than 7% after adjusted earnings per share came in at $0.51 — below analyst expectations of $0.53.

Net earnings attributable to shareholders were $139mn, or $0.27 per diluted share, compared to a near-zero result in Q1 2025. Total revenues rose 18.6% year-over-year to $6.05bn, well ahead of consensus estimates of $5.35bn.

The company’s potash segment posted adjusted EBITDA of $578mn, up sharply from the prior year, as Nutrien increased production from low-cost North American assets and maintained controllable cash costs below $60 per tonne. Potash sales volumes reached a quarterly record, supported by robust demand in Brazil, India, and Southeast Asia. The nitrogen segment also improved, benefiting from higher global benchmark prices tied to Middle East supply disruptions.

Retail adjusted EBITDA was $108mn, a seasonally slower quarter, but crop nutrient sales volumes and proprietary product margins improved in the US and Australia. Nutrien also completed a tuck-in acquisition of a corn belt retail business during the quarter.

Ken Seitz, Nutrien’s president and CEO, said the company “delivered record potash sales volumes and stronger Nitrogen and Retail performance” while taking steps to simplify the business and improve capital efficiency. Nutrien reaffirmed all full-year 2026 guidance ranges: potash sales volumes of 14.1–14.8 million tonnes, nitrogen sales volumes of 9.2–9.7 million tonnes, and retail adjusted EBITDA of CA$1.75–1.95bn. The company expects the first half of 2026 to account for about 70% of full-year retail earnings, consistent with prior years. Free cash flow is expected to be supported by tight global fertilizer supply-demand fundamentals through the rest of 2026.

The U.S. Department of Energy has approved a $1.5 billion loan for a new ammonia production project in Indiana, representing the largest federal commitment to domestic nitrogen fertilizer capacity under the Trump administration’s multi-agency expansion initiative.

Agriculture Secretary Brooke Rollins stated on April 29 that the project reflects the administration’s goal to accelerate U.S. fertilizer production within one to two years, despite the significant capital and time required for ammonia plants. The facility will use domestically abundant natural gas as feedstock, which Rollins identified as a strategic advantage for expanding U.S. nitrogen production.

The Indiana loan is part of a broader federal initiative involving the Environmental Protection Agency, Department of Commerce, Department of the Interior, and Army Corps of Engineers to streamline permitting for large industrial projects. Officials stated the initiative aims to reduce approval timelines for fertilizer facilities from several years to weeks or months. Projects investing over $1 billion in U.S. infrastructure may also qualify for support through the Department of Commerce’s investment accelerator program, which manages about $750 billion in financing capacity.

This funding initiative reflects a broader shift in federal policy toward fertilizer supply security. Rollins has called affordable fertilizer access a national security priority, while USDA Deputy Secretary Stephen Vaden has linked market concentration in the fertilizer sector to supply vulnerabilities. The administration has not identified the company behind the Indiana project, but further financing announcements and permitting measures are expected as agencies advance the domestic capacity expansion program.

Chapter 12 farm bankruptcy filings, the federal process intended for family-sized agricultural operations, increased by 46% in 2025, marking the third consecutive annual rise, according to data compiled by the American Farm Bureau Federation. The Midwest and Southeast experienced the most significant regional increases.

These figures indicate increasing pressure on US farms resulting from elevated input costs, persistently low commodity prices, and, most recently, the fertilizer and fuel price shock caused by the Strait of Hormuz disruption. Chapter 12, established in 1986 during the previous major farm debt crisis, enables eligible agricultural producers to reorganize debt and continue operations. It offers greater flexibility than Chapter 11 but imposes annual farm income and debt limits that exclude larger commercial operations.

Farm diesel prices have increased by 46% since the end of February. Anhydrous ammonia prices exceeded $1,100 per ton by late April, representing an increase of approximately 30% over two months. Urea prices have risen by about 50% since the onset of the conflict. These cost increases coincide with the spring planting window, a period when fertilizer and fuel constitute the largest share of operating expenditures for US row-crop farmers.

Approximately one in four US farmers had not secured fertilizer for the 2026 planting season as of the Farm Bureau survey conducted from April 3 to 11. A separate USDA analysis, which will be the first to capture post-crisis per-acre cost data, is expected soon and will offer greater insight into the disruption’s impact on farm margins. The three-year increase in bankruptcies, together with decades of ongoing farm consolidation, has resulted in fewer and larger farms absorbing a greater share of the income variability caused by such disruptions.