Input Prices Threaten Corn Farmer’s Bottom Line

Lyndi Allen
August 5, 2025

IL Corn, NCGA, and 24 States Urge Trump Administration to Address Fertilizer Price Spikes Threatening Farm Profitability

With input costs climbing to unsustainable levels, IL Corn has joined with National Corn Growers Association (NCGA) and 24 corn-grower states in urging the Trump administration to take immediate action. The letter detailed the worsening economic situation caused by elevated prices for fertilizers and other inputs that are critical for growing corn.


The letter, sent to the U.S. trade representative, secretary of commerce and secretary of agriculture, painted a grim economic picture in the American countryside. Signatories pledged to work with the officials to help address concerns with input costs, implement new trade deals and remove trade barriers.



The letter states, “Unfortunately, the combination of the low corn prices, trade uncertainty, and consistently high costs for fertilizers and inputs, including relevant countervailing duties, have resulted in a calamitous environment for farmers who are trying to plan for harvest and next season.”


The letter noted that farmers buy products from a variety of different supply chains – both domestic and imported – and placing penalties on imports can negatively impact corn farmers.


“When imports are subjected to antidumping and/or countervailing duties, the resulting duty contributes to higher prices that is ultimately paid by farmers,” the letter noted. “The current forecast for 2025 shows fertilizer alone accounting for 36 percent of a corn farmer’s operating cost.”


The letter noted that fertilizers crucial to corn growth have become exponentially more costly. Phosphates, for example, play an important role in root development and plant growth, and have seen a dramatic cost increase of more than 60 percent over the past decade and urea ammonium nitrate has increased by 37 percent since the beginning of the year.


The signatories said the price hikes couldn’t come at a worse time.


“After several years of sustained high prices for fertilizers and inputs, projections for calendar year 2025 show negative profit margins across the country, due to high input costs that exceed grain revenue by more than $100 an acre. Going forward, we will be closely coordinating with your agencies as farmers grapple with these financial conditions in order to stay in business.”


IL Corn will continue to advocate for corn farmers by explaining farmers' concerns about high input costs to key officials in Washington, DC.


If you’d like to read more about our individual efforts, IL Corn has sponsored economic research and analysis through farmdoc.

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