Many sectors of the agricultural world have had a lot to celebrate in the passage of House Resolution 1, often called the “One Big Beautiful Bill.” The fertilizer industry was no different, though it was not the direct focus of the bill’s agricultural elements.
“Any results that are positive for farmers typically bring a boost to the nutrient markets in terms of further buying of nitrogen, phosphate and potash supply,” says Mark Milam, fertilizer specialist and editor at Independent Commodity Intelligence Service. He notes the fertilizer industry at large has not immediately reacted to the passage of H.R.1, but that he expects the next round of demand will emerge after crops are harvested in the coming weeks.
“Policies that provide for industry growth, expansion and innovation are critical for the continued success of the U.S. fertilizer industry,” says Corey Rosenbusch, The Fertilizer Institute’s president and CEO.
“Our competitiveness on the global level comes in part from certainty and the ability to plan and invest in the future,” he adds. “The tax policies included within this legislation will allow our industry to continue providing our farmers with the crop nutrients they need to grow the food that feeds our country.”
Primary among those tax policies were:
- Making the 20% deduction for pass-through business income permanent
- Increased manufacturing investment credit from 25% to 35%
- Making permanent the Opportunity Zone program for rural communities
- Farm program funding for reference pricing, crop insurance, price loss coverage and agricultural risk coverage
Milam notes, among other things, that the bill raises reference prices under the Price Loss Coverage program and the Agricultural Risk Coverage program, and that crop insurance programs would see about $6.3 billion in increased spending.
“There is sentiment this commitment by the federal government will help improve crop prices, bring about more affordable crop insurance and improvements to livestock disaster program,” he says. “When evaluating the new bill, U.S. farmers certainly would be deemed as having a favorable outcome as it is estimated it will provide as much as $68.3 billion in spending for farmer programs over 10 years.”
Your next reads:
