WASHINGTON, D.C. – The U.S. Treasury Department’s Office of Foreign Assets Control announced last week it will provide a reprieve through April of next year on sanctions of potash fertilizers imported to the United States from Belarus.

“This is a win for the American farmer,” said Chris Edgington, National Corn Growers Association (NCGA) president. “Farmers are having a very hard time securing fertilizers, so a positive development like this couldn’t have come at a better time.”

The announcement is in response to a Nov. 4 request submitted by the American Farm Bureau Federation, Agricultural Retailers Association, American Soybean Association (ASA), National Association of Wheat Growers and the NCGA. The groups expressed concern that sanctions on potash were resulting in fertilizer shortages across the country.

In February 2021, the U.S. Department of Commerce recommended that the International Trade Commission implement tariffs of more than 119 percent on imported fertilizers from Morocco after Mosaic Company filed a complaint.

The Mosaic Company is a Fortune 500 company based in Tampa, Fla., which mines phosphate and potash, and operates through segments such as international distribution and Mosaic Fertilizantes. It is the largest U.S. producer of potash and phosphate fertilizer.

“Fertilizer prices still remain incredibly high, and, unfortunately farmers are caught in the middle of tariff fights and are hoping to see a decline in fertilizer prices,” said Theresa Sisung, Michigan Farm Bureau industry relations specialist.

Potash is a potassium-rich salt that is mined from underground deposits formed from evaporated sea beds millions of years ago. Potassium is an essential element for all plant, animal and human life.

Potassium is an important element because when there is a potassium deficiency in the soil, fertilizers containing potassium are used to help boost crop yields and improve the quality of the plant. Potassium protects plants from extreme temperatures, helps plants fight stress and disease, and deter pests such as weeds and insects. Potassium stops wilting, strengthens roots and stems, and assists in transferring food. It activates plant enzymes to ensure plants use water efficiently. Higher levels of potassium in the soil helps crops withstand stressful conditions.

According to national commodity organizations, potash use in row crops and fruit crops is substantial. They estimate potash is used on 63 percent of U.S. corn acres, 48 percent of cotton acres, 44 percent of soybean acres and 19 percent of wheat acres.

“The current sanctions restrictions as applied to agricultural potash are harming farmers and affording a competitive advantage to farmers in the United Kingdom and European Union, who continue to import agricultural potash from Belarus,” the groups stated in their Nov. 4 letter. “Following the announcement that agricultural potash imports would be impacted by the sanctions on Belarus, potash prices increased by 13 percent from the previous month, and are up 56 percent year-over-year.”

The organizations encouraged U.S. Treasury to consider the cumulative impact of sanctions of agricultural potash along with other trade actions that are increasing fertilizer prices for producers.

According to the ASA, all three core plant nutrients (nitrogen, phosphate and potassium) have “seen record-breaking increases in price driven by trade issues” adding that “certain grades of phosphate fertilizers have seen prices increase of more than 75 percent.”

The sanctions on imports of agricultural potash would create supply chain shortages as well, the group said.

“The American farmer should not have to suffer for the trade practices of foreign governments or for disagreement between multi-national corporations,” Edgington said. “Yet, that is exactly what happens when sanctions or tariffs are put in place. Farmers pay the price while others profit.”

As a critical crop input, U.S. farmers are heavily dependent on imported potash, including from Belarus, which produces 20 percent of the world’s supply.