OMAHA (DTN) -- U.S. farmers are paying a premium for seed and chemical inputs compared to Brazilian farmers, their largest global competitor, even though both countries' farmers are selling into the same global commodity market, according to a new study released by the National Corn Growers Association.

"We're paying far more for our inputs, and yet we're selling our products for the same price," said Matt Frostic, a Michigan farmer and NCGA's first vice president.

The study, conducted by the analytical firm Kynetec, shows U.S. farmers pay elevated prices for inputs even when exchange rates for the dollar and Brazilian real are factored in. U.S. farmers pay a premium for corn seed, fungicide, herbicide and some insecticides. The price differences "are substantial enough to affect farm profitability and long-term competitiveness," the report stated.

Among the study's biggest findings, U.S. corn farmers paid an average of 68% more for seed than Brazilian growers from 2023 through 2025, while U.S. growers also paid substantially more for fungicides, herbicides and insecticides.

Frostic noted when a committee was formed last year to look at input prices, he said the industry was in a "state of crisis," a characterization some people questioned at the time. Having more research to back up that claim, he said, should help push for more transparency in input pricing. Frostic said NCGA is still getting pushback from the industry over the group's focus on input prices.

There are also differences in product availability that factor into the price gap, the study stated. Brazilian farmers have more access to lower-cost products with single active ingredients and generic products. The U.S. market has more premium premixes and products from the major global manufacturers.

"However, significant price differences remain even when comparable products are examined," the report stated.

NCGA staff noted there are difficulties comparing input costs in different countries. Besides different agronomic conditions, there are different regulatory systems, taxes, pests, logistics and products, along with differences in farm sizes. Brazilian farms are generally larger on average than U.S. farms. Still, the price differences are largely consistent between farms in the two countries.

"This report does not claim that every product and acre are identical," said Kristi Swanson, chief economist for NCGA. "It does show that cost gaps are consistent enough and large enough to matter, and that the pattern is simply too clear to ignore."

Breaking down the main inputs highlighted in the report:

-- U.S. farmers paid an average of 68% more for corn seed from 2023-2025 than Brazilian farmers. There are notable gaps in pricing when comparing widely used trait packages.

-- For soybeans, U.S. farmers paid 24% more on average from 2023-2025, even though Brazilian seeds most likely stack herbicide and insecticide resistance while most U.S. varieties are only herbicide-resistant.

-- Looking at fungicides, American farmers are paying more than double the price Brazilian farmers pay, depending on the crop. Brazilian farmers have more access to generic products or older active ingredients while U.S. farmers use higher-cost formulations. Still, even when comparing the same active chemicals, "notable price differences remain."

-- Herbicide prices are higher across the board in the U.S. for corn and soybean farmers. Again, in comparing similar crops, some comparisons show U.S. farmers paying twice the price of their Brazilian counterparts. Just looking at glyphosate, a common herbicide used broadly in both countries, U.S. farmers paid about 35% more than Brazilian farmers in 2025.

-- Insecticides cost U.S. corn farmers 87% more than Brazilian farmers from 2023-2025 while American soybean growers paid 31% more over the same three-year period. In general, Brazilian farmers pay less for the same or similar active ingredients.

FARMER VIABILITY AT RISK

The higher costs of these inputs have put additional pressure on farm viability, the report stated. The higher costs affect margins, risk management and the ability to stay competitive. U.S. farmers are also carrying the burden of higher costs while Brazil is closing the gap on its transportation and export infrastructure. All of that puts U.S. farmers at an increased disadvantage as the two countries' growers sell their commodities into the same global market.

"From a farmer's perspective, these are real costs, not just abstract numbers," Swanson said. "Farmers are making their seed and crop protection decisions long before the season's outcome will be known, and corn growers don't get to pass those higher costs through the market. They're selling into the same global commodity market as farmers in other nations."

Swanson also said Kynetec was looking at fertilizer pricing differences between the two countries but did not have the same level of data needed to draw a conclusion compared to seed and chemicals.

The NCGA study also aligns with latest Purdue University-CME Group Ag Economy Barometer Index released Tuesday. It cited that 47% of farmers surveyed in June list high input prices as their biggest concern, followed by low commodity prices, which came in at 23%.

SO, WHAT HAPPENS NOW?

Ideally the report will increase pressure on the agricultural input industry to provide greater pricing transparency, expand access to generic products and reduce prices, Frostic said. The report also should draw more attention from lawmakers and the Trump administration.

"We work in a capitalist-type of world, but with so few competitors, it acts more like a utilities market," Frostic said. "So that's where I think that transparency needs to happen -- how pricing works."

RAMPING UP PRESSURE

NCGA and other farm groups have ratcheted up the focus on input prices in several ways. In late May, NCGA state affiliates hosted the chairman of the Federal Trade Commission at a meeting in Texas where the FTC is investigating fertilizer companies for potential anticompetitive behavior.

Farm groups last week also criticized Bayer Crop Science and its subsidiaries for filing a petition with the International Trade Commission seeking antidumping and countervailing duties on generic imports of glyphosate. That investigation could take roughly a year before the commission determines whether duties are warranted.

"Not only are we paying premiums for our products, but those same companies are now reducing our access to the generic products," Frostic said.

The report noted the increased reliance on countervailing duty cases by major input providers "only amplifies the problem of high input costs," adding "the interests of farmers, and more broadly, of all American citizens, should be a consideration when these decisions are being made."

As pressure has mounted over input prices, USDA has announced the hiring of an economist who will focus exclusively on analyzing input prices. The House and Senate versions of the farm bills call for more studies on input prices, but neither proposal includes policy changes aimed at increasing competition or restructuring agricultural input markets.

See, "Farmer Leaders Angry After Bayer/Monsanto Moves to Place Duties on Imported Glyphosate," https://www.dtnpf.com/….

Also see, "Purdue Barometer Shows Farmer Sentiment Pressured by High Input Prices," https://www.dtnpf.com/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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