Iowa Farmers and Consumers Decry Koch Fertilizer Plant Purchase

Iowans are sounding the alarm over the proposed sale of the OCI Global nitrogen fertilizer plant in Wever, Iowa to industry giant Koch Industries. Farmers and consumer advocates argue the sale will stifle competition, drive up input costs, and ultimately increase food prices.

The Wever plant was built using over half a billion dollars in taxpayer subsidies – the largest such subsidy in Iowa’s history. The Iowa Farmers Union was among the voices opposed to the subsidies, arguing that they would do little to increase market competition. Now, with the proposed sale to Koch, those fears appear to be realized.

On Saturday, April 20th, Lina Khan, chair of the Federal Trade Commission, will visit central Iowa to hear public concerns about the sale and the growing problem of monopolies in the agricultural sector.

“Four corporations control more than 75% of the nitrogen supply,” writes Aaron Lehman, president of the Iowa Farmers Union in an op-ed. “At this level of concentration, economists agree that market forces no longer work effectively to keep prices competitive.”

The Iowa Farmers Union, along with 18 other national organizations, have called on state and federal officials to intervene in the sale. Calling the deal “a slap in the face for taxpayers,” they highlight the irony of using public investment to prop up a corporate giant like Koch Industries.