NCGA Warns 2,4-D Duty Hurts Farmers

LINCOLN, Neb. (DTN) -- The president of the National Corn Growers Association on Thursday called on the U.S. International Trade Commission to reject a petition for tariffs to be levied on imported 2,4-D from India and China.

On March 14, Corteva Agriscience LLC filed a petition calling for antidumping and countervailing duties on imports of the herbicide. The company claims 2,4-D imports are injuring or threatening to injure the U.S. ag chemical industry.

Following the public hearing on Thursday, the trade commission is expected to render a decision within 45 days. If the ITC finds that dumping occurred, the cases will move to the U.S. Department of Commerce where preliminary antidumping and countervailing duty margins would be calculated.

Corteva said in its original petition that 2,4-D producers from India and China were exporting subsidized products into the U.S. Dumping takes place when a foreign producer sells a product in the U.S. at a price below a producer's sale price in its country of origin.

Harold Wolle, president of NCGA and a farmer from Madelia, Minnesota, told the commission in prepared testimony that placing duties on 2,4-D imports could lead to higher prices and shortages for farmers.

According to Corteva's petition, Chinese and Indian 2,4-D made up 81% of the chemical's imports into the U.S. Corteva is the sole U.S. producer of 2,4-D.

That petition estimates the dumping margin for 2,4-D is between 142% and 388% for China and 55% to 139% for India. Corteva said in the petition that because of the dumping, U.S. producers "continually lost sales and revenues" and that led to Corteva's lost market share and declining sales.

"In recent years we have seen the market price for these products and other inputs steadily increasing," Wolle said.

"Costs of production per bushel of corn are currently near record highs. Meanwhile, the price received for corn has been decreasing. This scenario under consideration has the potential to limit imports of an important product and create a supply shortage, in an already tight market."

Corteva did not respond to DTN's request for comment before publishing time.

NCGA said in a news release on Thursday, that the bulk of imported 2,4-D comes from Asia -- meaning duties could place a hardship on U.S. farmers.

"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," Wolle told the commission.

"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."

In 2022, NCGA testified before the commission on a similar case involving a urea ammonium nitrate investigation. The commission voted against levying duties on UAN (https://www.dtnpf.com/…).

"We see a lot of similarities between the UAN case and this case," Wolle told the commission.

"Both cases were brought by a single, dominant domestic supplier seeking to further consolidate its market position. Imports were not injurious in the UAN case and we do not believe that they are injurious here."

The petition couldn't come at a worse time, Wolle said, as the price of corn has declined more than 40% during the past two years and the average cost of producing corn was higher than the average selling price of corn in 2023.

"Our members have provided feedback on experiencing supply shortages at the time of the COVID-19 pandemic," he said, "along with paying increased prices for 2,4-D in recent years. I too have experienced this on my farm. We don't want to feel an even sharper burden as we look to improve our competitiveness in climate-smart agriculture practices domestically and around the world."

Todd Neeley can be reached at todd.neeley@dtn.com.

Follow him on X, formerly Twitter, @DTNeeley.

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