Jones Act Waiver May Cut Phosphate Fertilizer Prices by 22%, USDA Says

MARYLAND — Last week, President Donald Trump signed a proclamation temporarily suspending the Jones Act.

The Jones Act requires goods shipped between U.S. ports to be transported on ships that are built, owned and operated by U.S. citizens. The temporary waiver allows international ships to transport goods between U.S. ports, increasing access and potentially lowering costs.

According to the U.S. Department of Agriculture, the temporary suspension could reduce phosphate fertilizer prices by 22%. Maryland Farm Bureau President Jamie Raley said lower fertilizer costs would help farmers by reducing one of their biggest production expenses.

“Regardless of whether it’s vegetables, grain crops, hay for my cattle or pasture, the main three nutrients are nitrogen, phosphorus and potassium, what we call potash,” Raley said. “Each one provides the plant with nutrients that help it grow and produce.”

Raley said row crop farmers stand to benefit the most from lower phosphate fertilizer prices.

“The farmers growing corn, soybeans, wheat and barley will definitely see an improvement in their bottom line if they don’t have to pay as much for this particular input in their production process,” he said.

Raley added that lower fertilizer costs would have a positive impact on agriculture across the country.

“Oh, it’s absolutely positive across the spectrum for all of agriculture in the United States,” Raley said. “Corn is used here in Maryland to support the poultry industry. Again, if farmers can get better prices for this, it’s a win for all of us.”