The US Department of Commerce has made a significant reduction in the import duties on Moroccan phosphate fertilisers, a move that could potentially offer some respite to American farmers facing high fertiliser prices.
Josh Linville of Stone X conveyed to Brownfield his astonishment at the announcement made last Friday, which saw duties drop sharply from 19.97% to 2.12%. However, Linville cautioned that this reduction might not drastically lower the prices of phosphate fertilisers such as Di-ammonium Phosphate (DAP) and Monoammonium Phosphate (MAP).
He suggests that a substantial decrease in prices would require increased global production, not just improved inventory levels due to lower duties.
Linville also tempered expectations of immediate price relief, noting that even if Morocco dispatched fertiliser immediately, it would not reach US shores until early December, and it would take even longer for supplies to arrive at local distributors.
The decision to lower duties has been met with approval from over 60 agricultural groups, including the National Corn Growers Association, which had previously petitioned the Commerce Department for the reduction.
This collective endorsement from the agricultural sector underscores the importance of phosphate fertilisers in crop production and the broader implications of fertiliser pricing on farm economics.
