Senator Hawley Accuses CF Industries of Price Gouging, Urea Prices Surge 32% in 12 Days

Investing.com - Senator Josh Hawley on Thursday accused CF Industries Holdings Inc (NYSE:CF) and other fertilizer giants of price gouging. After Iran-related conflicts caused supply disruptions, urea prices surged 32% in just 12 days. He sent a letter with nine detailed questions to the company’s CEO requesting answers.

The Missouri Republican and chairman of the Senate Crime and Terrorism Subcommittee emphasized in his letter to CF Industries CEO Christopher Bohn that urea fertilizer prices soared from about $516 per ton to as high as $683 within 12 days. According to AgWeb, a retailer in Missouri reported that urea prices increased by $140 per ton over two weeks, NH3 rose by $100 per ton, and UAN increased by $100 per ton.

On Thursday, Hawley stated on X platform: “In my view, the fertilizer giants are clearly engaging in price fraud against farmers. This will lead to farmers going bankrupt and significantly raising food prices. Someone needs to explain to them that price gouging is illegal. So either stop or face an investigation.”

Despite the controversy, fertilizer stocks surged significantly. CF Industries’ stock jumped 13.21% to $136.00 on Thursday, Mosaic Company (NYSE:MOS) rose 7.58% to $31.36, and Nutrien Ltd (NYSE:NTR) increased 5.84% to $83.94.

Hawley’s letter comes at a critical time for American agriculture. The price surge occurs during the spring planting season, when 50% of nitrogen fertilizer is used for corn, 28% for cotton, and 42% for spring wheat. According to Farm Progress, as of March 9, the North American fertilizer price index broke above $810 per short ton, surpassing the peak of $776.85 set in August 2025.

In his letter to Bohn, Hawley wrote: “American farmers cannot afford another price shock. If your company uses this conflict as an excuse to raise prices beyond reasonable market conditions, Congress will not stand idly by.”

According to The Fertilizer Institute, although nearly 50% of global urea exports come from countries west of the Strait of Hormuz and are transported through this waterway, Hawley believes the price increases far exceed the actual impact of supply disruptions on American farmers. Wholesale urea prices jumped from the high-low range of $460-$480 per short ton in the week of February 27 to $520-$620 in the week following the start of the conflict.

Farm Progress reports that this timing is especially sensitive, as the Department of Justice is investigating whether CF Industries, Nutrien, Mosaic, Koch Industries, and Yara International colluded to raise prices. The fertilizer industry is highly concentrated, with four companies controlling 75% of the nitrogen market and two companies nearly controlling 100% of the U.S. potash supply.

U.S. Deputy Agriculture Secretary Luke Lindberg warned in an interview with Politico: “Any attempt by companies or any part of the fertilizer supply chain to exploit this situation to engage in price fraud against American farmers and ranchers will not be tolerated.”

Key Points

CF Industries faces a deadline of March 27 to respond to Hawley’s detailed questions, including:

• Specific price changes by date, product, location, and percentage since February 28

• Evidence that each price change was justified by increased costs, including raw materials and freight

• Any communication with competitors regarding prices or market conditions since February 28

• Quarterly gross margin and operating profit margin from early 2024, 2025, and 2026 to date

• Internal pricing strategies or documents related to competitor pricing or “price leadership”

The company must also retain all documents and communications related to fertilizer pricing from January 1, 2025, to the present.

Follow-up Background

The Chair of the U.S. Department of Agriculture Federation, Zippy Duvall, plans to testify before the Senate Agriculture Committee on Tuesday, March 16, to provide farmers’ perspectives on the fertilizer crisis. As the spring planting season intensifies before May, ongoing DOJ antitrust investigations increase regulatory pressure.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.