(Radio Iowa) – Koch (coke) Industries has announced a three-point-six billion dollar deal to buy a fertilizer plant in southeast Iowa, and some ag leaders fear it could create a monopoly. The purchase of the Iowa Fertilizer Company in Lee County still awaits federal review. Jason Sporrer is a sales manager for a co-op that serves western Iowa. He says when the fertilizer company opened in 2017, it brought more competition to the marketplace.

“Some of that now is going by the wayside, in my opinion,” Sporrer says. Democrats in the Iowa statehouse also have questions about the acquisition. They want federal and state regulators to investigate the impact consolidation would have on prices and the 260 employees of the facility in Wever. Iowa State University economics professor Chad Hart says four of the top producers control 80-percent of fertilizer production.

Hart says, “I think that always puts up what’s called yellow caution lights within the sector about, okay, are we truly maintaining the competitive balance there or not?” Hart says the war in Ukraine led to major swings in fertilizer pricing. A U-S-D-A spokesperson says when dominant middlemen control so much of the fertilizer supply chain, producers, and consumers “bear the brunt.”