Phosphate production cuts draw concerns

BLOOMINGTON, Ill. — In response to The Mosaic Company’s plans to scale back domestic production, state and national soybean leaders called on the Trump administration to take action.

“Mosaic is closely monitoring raw material markets, particularly sulfur, which recently hit record prices because of limited availability,” the company, headquartered in Tampa on the Gulf Coast of Florida, said in its first-quarter report.

“As a result, Mosaic has withdrawn its phosphate production guidance for 2026 as it reviews its operating plan for the rest of the year. As part of this review, Mosaic has taken initial steps to partially curtail production at (the Faustina Plant in St. James Parish between New Orleans and Baton Rouge in) Louisiana and Bartow (in central Florida) and is scaling back additional production in Brazil.”

Mosaic adjusted its 2026 capital expenditure guidance to $1.25 billion.

“Lower spending reflects an optimized project portfolio combined with the deferral of spending on less-time sensitive projects to future periods. Mosaic does not expect any material impact to medium term operating rates as a result of these actions,” the company said.

“Mosaic executed real estate transactions in Florida in the first quarter that generated cash proceeds of $31 million.

“The sale of the Carlsbad, N.M., potash mine was completed in April. Last month, Mosaic announced a plan to pursue strategic alternatives for its Araxa and Patrocinio assets in Brazil. These include a potential sale of Araxa and ongoing exploration of niobium opportunities at Patrocinio.”

Concerns

Illinois Soybean Growers expressed concern regarding Mosaic’s announcement that it will scale back domestic phosphate fertilizer production as sulfuric acid costs continue to rise — at a time when farmers are already facing tight margins and continued uncertainty in the farm economy.

“Fertilizer availability and affordability remain a top priority for Illinois soybean farmers,” said ISG Chairman Bryan Severs, of Potomac in eastern Illinois.

“When domestic phosphate production is reduced, it only adds more pressure for growers who are already dealing with higher input costs and difficult market conditions.”

“This unsettling news from Mosaic comes at a time when U.S. soybean farmers are facing major economic headwinds, and neither the skyrocketing cost nor the availability of inputs — like phosphate fertilizer — are helping ease those challenges,” said Scott Metzger, of Williamsport, Ohio, American Soybean Association president.

“This is the worst time possible for Mosaic to decrease domestic phosphate production. High sulfuric acid costs are disrupting the global fertilizer market, and farmers are ultimately paying the price through higher input costs.”

ASA and ISG are urging President Donald Trump and his administration to take direct and immediate action on fertilizer costs and supply chain challenges, including a reassessment and elimination of countervailing duties on imported phosphate fertilizers from Morocco and Russia.

“This ill-conceived duty has increased the cost of phosphate fertilizer for farmers by $6.9 billion over the past five years while commodity prices continue to trend downwards,” Metzger said.

“We urge the president to remove the countervailing duties on phosphate fertilizers to address the availability and affordability of this important input.”