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Fertilizer costs, farm payments and screwworm response raise concerns

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This is Bob Bragg with the Farm News & Views Report for the week of June 29th

Over the past couple of months, both the price of fuel and fertilizer has been volatile, because of the on again off again war with Iran, which has some of Trump’s Cabinet floating the idea that the U.S. should just simply increase domestic fertilizer production. Problem solved. But Corey Rosenbusch, President and CEO of the Fertilizer Institute points out that increasing fertilizer production isn’t just a matter of flipping a switch, because it could take four or five years to build a nitrogen plant, and that would cost $4 billion or $5 billion. But Rosenbusch contends that fertilizer plants shouldn’t be operated by the federal government, because the U.S. has a free enterprise economy. Another consideration is that China is the world’s largest producer of fertilizer, and they have increased their production by 20% this year, which could bring down the cost of fertilizer if they decided to engage in fertilizer trade.

Although President Trump has sent about $12 billion to farmers this year to cushion the blow caused by tariffs, he is now considering sending an additional $10 billion to row crop and specialty crop producers for fields planted in 2026, along with $1.1 billion designated for Florida farmers hit by winter storms in late 2025 and early 2026. These new payments are ostensibly being made to help producers contend with high production costs and low crop prices that have been made worse by Trump’s current trade policies and the war with Iran. Farm and industry groups have indicated that these payments will help producers cover costs for spring planting, although they are insufficient to make them financially whole.

If the White House request for these additional funds is approved, the administration will have sent about $55.4 billion in direct payments to farmers this year, according to U.S. Department of Agriculture data. That would comprise roughly 33% of total farm income in 2026, which is the highest level in direct payments since 2001, according to Wesley Davis, a partner at Meridian Agribusiness Advisors, an agricultural economics consultancy.

As a side note, Trump’s approval rating among rural Americans fell in June to a new low of 50%, down from 60% in February 2026, according to Reuters/Ipsos polling.

While New World screwworm infestation numbers continue to grow, ranchers are reporting that there is a critical shortage of skilled labor that can respond to the outbreak. They point out that technology and drones can’t replace cowboy boots in stirrups for spotting and treating infected calves. When the U.S. eradicated screwworm in 1966, the fight relied on sterile insect releases along with cowboys who rode sunup to sundown roping and doctoring calves. Today’s cattle industry includes more animals with fewer people, and that efficiency might come at a cost when a labor‑intensive pest returns. State Representative Don McLaughlin, stated, “That without cowboy labor it will be difficult to mount a NWS screwworm response, since we don’t have the cowboys that we did before.” McLaughlin also points out that there is a shortage of day labor, and he doesn’t know what it will take to attract and keep the people who can do the work, since there are fewer cowboys and horses. Also, most ranches depend on using feed trucks, side‑by‑sides and helicopters to check and gather cattle quickly, rather than having riders doing close‑up visual checks for wounds and other problems, while higher wildlife numbers givie NWS more wild hosts that can cause screwworm numbers to increase quickly.

George Washington wrote, "Laws made by common consent must not be trampled on by individuals”

Bob has been an agricultural educator and farm and ranch management consultant for over 40 years in southwest Colorado. He writes about agricultural issues from his farm near Cortez, and has helped to produce farm reports on KSJD for more than a dozen years.
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