A severe hurricane hitting a major phosphate facility could lead to widespread consequences for the U.S. agricultural sector and food supply, an expert has warned.
The Mosaic Company facility in Tampa, Florida, is one of the largest producers of phosphate-based fertilizers in the country and plays a critical role in ensuring a steady supply of key nutrients for crops such as corn, soybeans, and wheat.
Josh Linville, director of fertilizer at financial services firm StoneX, has posted several concerns on X, formerly Twitter, about the potential impacts if Hurricane Milton were to hit the Mosaic facility.
“Milton is taking a direct shot at major phosphate production. Would U.S. agencies consider an emergency short term repeal of counter vailing #phosphate duties against Morocco/Russia/China to allow inventories to arrive?” Linville posted on Wednesday.
He later posted: “This isn’t good. I am less concerned about facilities being impacted and more worried about infrastructure (electric) damage as well as workers needing to take care of friends/family before returning to work. It doesn’t get much worse. Godspeed.”
Newsweek reached out to Mosaic via email and Linville on X on Thursday for comment.
Tampa, Florida, prepares for the arrival of Hurricane Milton on October 9, 2024. Milton comes just after the recent catastrophic Hurricane Helene, triggering concerns damage could impact U.S food supply.
Spencer Platt/Getty Images
Located near Florida’s hurricane-hit Gulf Coast, the Mosaic facility produces a substantial portion of the phosphate used in fertilizers throughout the United States.
According to industry reports, the company has a notable market share in at least two industries: mineral and phosphate mining, and fertilizer manufacturing, with its largest market share in the mineral and phosphate mining industry, accounting for an estimated 38.4 percent of total industry revenue.
In the event of a hurricane causing extensive damage, not only could production halt for months, but critical supply chains could be severely disrupted. The effects could ripple across the agricultural sector, potentially leading to higher fertilizer costs, crop shortages, and increased food prices for consumers, Newsweek understands.
Newsweek contacted the Florida Department of Environmental Protection via email on Thursday for comment.
The Mosaic facility processes phosphate rock, mined from central Florida, into phosphorus-based products like diammonium phosphate (DAP) and monoammonium phosphate (MAP), which promote crop growth.
As more than a third of the phosphate used in U.S. agriculture comes from Florida’s phosphate operations, with Mosaic being the primary player, any damage to this facility could reduce domestic production capacity at a critical time when global fertilizer supply chains are already strained due to geopolitical factors and trade restrictions.
The potential fallout could go beyond just fertilizer shortages. Farmers may struggle to secure adequate fertilizer supplies, forcing them to delay planting or resort to less effective alternatives. This disruption could lead to reduced agricultural output and significantly impact the prices of key commodities such as corn, soybeans, and wheat, which are essential to the food supply and livestock feed.
The U.S. Department of Agriculture (USDA) has already flagged rising input costs as a concern for farmers, and an interruption in phosphate supplies could exacerbate the problem.
Newsweek contacted the USDA and National Farmers Union on Thursday via email for comment.
