From staff reports Harold Wolle, president of the National Corn Growers Association, recently warned the U.S. International Trade Commission against placing tariffs on 2,4-D herbicide, saying growers need reliable access to essential farming tools.
“The scenario under consideration has the potential to limit imports of an important product, raise its price and create a supply shortage, all while raising the cost of production in an already tight market,” Wolle said. “Farmers are price takers, not makers in selling our commodities, and closely managing our production costs is crucial to our success. Thus, tariffs on these products would create an even more difficult economic scenario for me, my family, and the farmers I represent.”
His testimony follows Corteva Incorporated’s antidumping and countervailing duty petitions with the ITC on March 14 over India and China’s herbicide trade practices.
The 2,4-D-based products are significant inputs for raising crops, like corn and soybeans.
NCGA, citing data supporting that the bulk of imported 2,4-D comes from Asia, said laying tariffs on these products could place a hardship on American producers as they struggle to access herbicide or outright fail to afford them.
Wolle also noted the poor timing of this petition, as corn prices have fallen by over 40% over the past two years. In 2023, the average cost of corn production was higher than the average selling price. Even before taking this new petition into account, farmers are expecting an even larger loss on corn production in 2024.
While Corteva Inc. provides valuable innovations to farmers, NCGA noted, it is still important that growers have access to imported products.
“We are thankful companies like Corteva have invested in new technologies, including seed traits and herbicides, that allow us to continue producing more effectively and efficiently every year,” said Wolle. “However, farmers simply cannot rely upon a sole supplier for nearly all of our 2,4-D needs. That will undoubtedly lead to shortages and delays in an industry that must have timely delivery.”
The ITC will determine whether the imports are injuring or threatening to injure the U.S. industry within 45 days. If the ITC determines this to be the case, it will move to the Department of Commerce, which will calculate the antidumping and countervailing duty margins.