ASA joins commodity groups in calling on ITC to nix petition related to duties on herbicides

The American Soybean Association (ASA) joined the nation’s major commodity groups, in sending a letter to the U.S. International Trade Commission to encourage it to vote negative in advancing a petition by Corteva Agribusiness to place antidumping and countervailing duties on imports of the herbicide 2,4-D shipped from India and China.

The letter said if the U.S. International Trade Commission votes to continue the case beyond the preliminary stage, farmers across the country could soon find it difficult to access critical supplies.

The letter, signed by leaders from ASA, the National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Sorghum Producers and the U.S. Durum Growers Association, expressed concerns that the petition could hinder imports and cause herbicide shortages.

“The imports covered by this case are the large majority of sources of supply other than Corteva, which is the only U.S. supplier,” the letter said. “To put it simply, America’s farmers cannot rely upon a sole domestic supplier of 2,4-D to meet nearly all the market’s needs, and imports are needed to meet the majority of market needs.”

Duties on 2,4-D imports from the two countries would intensify what is already a difficult period for many growers as key input costs continue to increase.

The U.S. Department of Agriculture is projecting record high farm production cash expenses for 2024. At the same time, crop values are declining. USDA projects total cash receipts for crops in 2024 will be 11.7% lower than 2022.

The letter noted that the petition, which seeks to limit imports of a critical farm input, only makes a rough environment even more challenging.

“There is no way for farmers to make up for the additional costs, as we are price takers, not makers, in selling crops,” the leaders said. “If this case moves forward, we will be forced to make budget cuts that can impact our operations as well as our local economies. To put it simply, the weight of a dispute between multinational companies would fall directly on the shoulders of growers.”

The ITC is scheduled to vote on its preliminary determination in this case on May 17, 2024.

Click here to read the letter.

The Minnesota Soybean Growers Association is one of ASA’s 26 state affiliates.

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