LIMA, Ohio (WLIO) - Fertilizer prices aren't just rising because of the global conflict, they're also shaped by who controls the supply.
Although many think the war with Iran is a direct detriment to farmers, there is more behind the scenes that consumers don't realize. In the U.S., much of the fertilizer market is dominated by a small number of companies. With fewer competitors, prices can stay high, especially during times of global issues. For farmers, that lack of competition adds another layer of pressure on top of already rising costs. We talked to a local farmer to hear how the product is distributed.
"The people that provide the majority of the product, it's concentrated to three companies, and so it's almost like a monopoly in this market for fertilizer," says Alan Davis, a local farmer.
He adds that there is not a lot of rationale as to why nitrogen costs what it costs, even before the middle east conflict, causing more confusion as to why fertilizer is one of the harder products to find for farming.
