WASHINGTON -- Sens. Kent Conrad and Byron Dorgan and Congressman Earl Pomeroy are calling on the U.S. Department of Agriculture to investigate the cause of skyrocketing agriculture fertilizer prices.
"This unprecedented volatility in fertilizer prices is responsible for growing uncertainty and frustration among our nation's farmers and ranchers," the delegation writes in a letter to Agriculture Secretary Ed Schafer. "Even with currently strong commodity prices, income from farming is barely keeping up with increased farm input costs and, in particular, sky-rocketing fertilizer prices."
In recent months, the price of agricultural fertilizer has risen to record levels. According to the National Agriculture Statistics Service, fertilizer prices in May 2008 were 69 percent higher than they were in May 2007. And the 2007 prices represented an increase in costs of 158 percent compared to May 2000.
While some of the increase may be a result of rising petroleum costs, those factors alone do not fully explain the current escalation in fertilizer prices. The Congressional delegation wants an immediate investigation into the rapid increase in fertilizer prices to assure that farmers and ranchers are not being overcharged.
The Congressional delegation is requesting that the U.S. Department of Agriculture exam-ine energy and transportation costs, availability of raw material, processing capacity, do-mestic and global demand factors, and industry consolidation. The delegation asked Secre-tary Schafer to report the USDA's findings to Congress once the investigation is complete.
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"We hope this investigation will provide answers for our family farmers and ranchers who are extremely concerned and trying to understand the inexplicable run up in fertilizer prices," the delegation says.
