Fertilizer industry contributes $130B to U.S. economy

The fertilizer industry contributed more than $130 billion and nearly 500,000 jobs to the U.S. economy in 2019, according to a study released by The Fertilizer Institute.

The Fertilizer Industry Economic Impact Study highlights the economic contributions of the U.S. fertilizer industry to national, state and local economies.

“The fertilizer industry doesn’t just help grow the food on your dinner table, we also help grow the U.S. economy,” said TFI President and CEO Corey Rosenbusch.

Who is involved?

The fertilizer industry is comprised of companies who represent the entire supply chain from production to distribution to retail. The United States is the world's fourth-largest producer of nitrogen-based fertilizers and the second-largest phosphate producer.

What policy priorities are outlined in the study?

• Stewardship - 4R Nutrient Stewardship – the use of the Right fertilizer source at the Right Rate, the Right Time and in the Right Place is a framework for sustainable nutrient management.
• Transportation – A reliable transportation network is vital to moving fertilizer from natural resource deposits to farms. Generally, a ton of fertilizer might travel by ocean-going ships, railroads, trucks, and river barges before reaching the farmer.
• Safety and security - ResponsibleAg, a voluntary stewardship program, serves as an industry resource for retail agribusinesses working to comply with federal environment, health, safety, and security regulations.
• Energy - The production of fertilizer is energy intensive. Natural gas is used in the production of nitrogen and in manufacturing dry phosphate fertilizers. Natural gas can account for between 70% and 90% of the nitrogen fertilizer manufacturing cost. Government policies that encourage switching to natural gas may affect demand by creating energy supply or pricing issues. This can impact the U.S. fertilizer industry’s competitiveness in the global market.

How was the study conducted?

The publication of the study, conducted for TFI by John Dunham and Associates, is the culmination of months of compiling data including the direction contribution, supplier contribution and downstream positive impacts of the entire fertilizer industry value chain – from manufacturers to wholesalers, retailers and goods and service providers.

Click through the slideshow for more information from the study.