Farmers say 2,4-D import tariffs would hurt costs, availability

By Pune Media On Sep 17, 2024 44

Leaders from the Kansas Corn Growers Association and National Corn Growers are frustrated with a recommendation by the U.S. Department of Commerce to impose preliminary countervailing duty rates on imports of the herbicide 2,4-D. Kansas Corn leaders said input costs are high enough without government tariffs to push them even higher. KCGA President J.D. Hanna, Silver Lake, said the action would hurt farmers. KCGA is working with NCGA to resolve the issue.

“In a perfect world, U.S. farmers wouldn’t have to rely on imported inputs like 2,4-D. But in reality, imported generic 2,4-D along with other herbicides are important to our efforts to manage weeds. Farmers are already seeing inflationary increases to input costs. This government action would be another hit to farmers, directly increasing production costs at a time when we are already talking about thin margins instead of profit margins,” Hanna said. “This is the beginning of a long process, and KCGA is working with NCGA and other ag partners on this issue.”

KCGA Board Member Tanner McNinch, Ness City, said farmers have already seen dramatic increases in 2,4-D prices and a tariff would lead to higher costs.

“We’re already facing higher prices due to inflation, and we are also seeing supply issues. In June, our farm paid a little over $20 per gallon of 2,4-D, and now the lowest price I can find is $29, a 45 percent increase over just a few months — and that’s if you can get it. A tariff would further increase the price and make supply issues even worse,” McNinch said.

The decision comes at the request of domestic herbicide producer Corteva Agriscience, which filed a petition earlier this year calling for antidumping and countervailing duties on imports of herbicide 2,4-D from certain foreign suppliers. Farmers have said that their demand exceeds the domestic supply of the product, and foreign sources help fill this gap.

“Access to this herbicide is critical for corn growers. Because there is only one domestic supplier manufacturing 2,4-D, growers in the U.S. must look to foreign suppliers to help meet our needs,” said Minnesota farmer and NCGA President Harold Wolle. “We would welcome ideas from Corteva on how to ensure that this herbicide is available and affordable for American growers.”

Other grower leaders also spoke out about the recommended duty rates.

“This decision to raise duties on imports is disappointing for soybean growers nationwide,” said Josh Gackle, president of the American Soybean Association and a soybean farmer from North Dakota. “We rely on imported generic 2,4-D in combination with other herbicides, to manage weeds efficiently before planting. The increased costs could strain our operations during an already difficult time.”

The proposed duties would place a substantial tariff on herbicide imports, which has the potential to impact availability throughout rural America.

“This couldn’t come at a worse time,” Wolle noted. “The price of corn has declined by more than 40 percent over the last two years, and the average cost of producing corn was higher than the average selling price of corn in 2023. We are expecting that margin of loss to be even worse in 2024—even before taking this new trade case into account.”

Gackle added, “This is just the beginning of a lengthy process. ASA remains committed to advocating for soybean farmers by engaging with Congress, Commerce and the ITC. We will continue fighting against these duties and work toward a resolution that supports U.S. farmers and their bottom lines as the antidumping and countervailing investigations continue.”

Commerce’s announcement follows the International Trade Commission’s vote to move forward with the investigation earlier this year. Commerce is expected to announce final duty rates at some point next year. The International Trade Commission, which has the power to dismiss this case in its entirety, will fully hear the case and make its final determination in 2025.