A North Dakota farmer was one of 100 producers from 18 states to meet with the head of the FTC to voice concerns on several issues involving the fertilizer industry.
Adam Ladwig is the secretary/treasurer of the North Dakota Corn Growers Association. His role afforded him an opportunity to tell the head of the Federal Trade Commission on the challenges of high prices, reduced competition and other issues involving the fertilizer industry.
Transcript
Adam Ladwig: And we were able to kind of voice our concerns within the fertilizer industry. And, then he made the announcement there that, they were launching an investigation into, the fertilizer industry for unfair practices for, antitrust policies or antitrust laws, pricing or non transparency of pricing. I guess I would put it, because it a lot of the talk happened to be, the Southern Mississippi Valley guys. They have a little different story down there. So a lot of what they focused on is that, the manufacturers are actually becoming retailers down there. They've been undercutting the retailers, and, they don't really have the true co-op mentality or true co-op style down in that area anymore because, the manufacturers kind of kick them out, I guess, in a sense. Where in our area we still have the co-op style, but our co-ops are still, purchasing from only 1 or 2 of these manufacturers. Did you get an answer? No, I guess not. Not a straightforward answer, but, in my opinion, I guess for the chairman to be there, I know they're serious about it. And how I understand it, they've already sent out subpoenas on some of these things, so, I believe they should have. There's something that they're chasing after, and I hope they find all the evidence they need and can get. But I don't think the chairman would come out to us and meet with us in that setting if there wasn't something there, and if they weren't serious about it.
Yeager: At what point is, is the words and the actions? Where does the rubber need to meet the road for you?
Ladwig: Adam? Yeah. We just we have to see change in the industry, whether I mean, ideally, we would like to see more fertilizer manufacturers. I know there's there's one in North Dakota that's trying to get started, but there's others in other states and like I said, the example in Iowa that there was a fertilizer plant there and it got out by bought out by the big company. And I guess if that's not, a form of monopoly, then I guess I don't know what it is because you're just you're taking out that, competitiveness in the marketplace.
Yeager: It's that middle. It's that retailer that probably is the biggest concern, outside of your own right now, right?
Ladwig: Yeah, absolutely. And I guess we're seeing that in the the retailer market as well. Consolidation beyond belief. We lost a lot of we don't have the co-ops or the retailers that we used to around here. I guess their locations are still there, but it's a different name under a bigger company. So the squeeze is on for them, for sure.
Yeager: What's the perfect solution that can come from all of the meetings and the conversations right now?
Ladwig: The solution is going to be is hopefully we can get enough evidence or the FTC can get enough evidence to, bring a lawsuit for, that was one of the biggest thing is, they kind of want to make sure that they have all their ducks in a row to be able to bring a lawsuit forward because, they're it'll just end up being a lawyer battle. But as of now, I wish I could say things would just change immediately, but that's not going to happen. So I think as far as the FTC goes, that that would be the solution is, being able to sue the fertilizer industry and, confirm that there is antitrust laws being broken. And I know the DOJ has been investigating as well on other issues. So, I mean, there's a lot of eyes on that industry right now. Within the government.
Yeager: The full MToM episode will release Tuesday.
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