b'HOW GLOBAL TRADE ISSUES, SUPPLY AND DEMAND ARE DRIVING UP FERTILIZER COSTSAt The Mosaic Company, our mission is to help the world 3) Trade and Supply disruptions continue to reshape the marketgrow the food it needs. We do everything we can to oerOther countries announced restrictions of fertilizer exports stable prices and a reliable supply of critical fertilizer to to ensure their own domestic supply. For example, China,U.S. farmers. In fact, we supply about half of the phosphatewhich accounts for over 25% of global phosphate exports, fertilizer applied in the United States. We recognize thatimposed strict export controls in October of last year thatfertilizer costs have increased dramatically over the pastare slated to remain in place through June 2022, drastically several months, and feel a responsibility to share our decreasing global supply and adding pressure to globalglobal perspective on this complex issue.prices, including those in the U.S. Further, the entire supply 1) Fertilizer demand follows commodity prices chain has been deeply impacted by the drastic increaseDemand for fertilizer has increased as farmers try to in import and ground transportation costs. In addition,capture additional revenue from higher crop prices, several atypical weather events and mechanical issuesleading to an increase in both planted acres and fertilizer disrupted production at several facilities around the world, use. The trade outlook for U.S. agricultural commoditylimiting supplies in the short term. exports remains strong for 2022, as it was in 2021, and In March 2021, the U.S. International Trade Commission issued with higher grain prices driving higher fertilizer demand, a countervailing duty on Moroccan and Russian phosphate higher fertilizer costs historically follow.fertilizer imports due to unfair foreign subsidies. IrrespectiveAdditionally, fertilizers are globally traded commodities, of this, phosphate imports came into the U.S. at record levels, just like corn, and as a result, fertilizer prices are and from a more diversied supply base. In fact, U.S. phosphate inuenced by many factors such as increases in imports increased by 1.7 million metric tons or 73% year-over-commodity prices driving global demand of fertilizers. year in 2021 and from double the amount of suppliers relative to historical norms. This has resulted in a more balanced and 2) The cost of fertilizer production has increasedfair-trade market, which creates a more competitive environment Higher input costs such as ammonia and sulfur, two with trusted and reliable suppliers for American farmers and critical inputs for production of phosphates, were American agriculture in the long term. Phosphate prices insubject to sharp increases in 2021, and have seen the U.S. are currently $150 to $200 per ton less than in other further acceleration in 2022. Prices have increased major agricultural markets such as Brazil, India, and Europe.401% and 198%, respectively, year-over-year.Assertions that the countervailing duties are driving U.S.prices higher are simply untrue.We understand the pressures ag retailers and farmers are facing during this tumultuous time and the frustration that comes with it. We value our long-standing relationships and are committed to our retail partners and their farmer customers, and will continue to oer them transparency and support as they navigate tough decisions ahead.2022 The Mosaic Company. All rights reserved. JULY/AUGUST 2022 POTATO GROWER 31'