Northey comments on Terra/CF merger - KTIV News 4 Sioux City IA: News, Weather and Sports

Northey comments on Terra/CF merger

SIOUX CITY, Iowa (KTIV) -- Illinois-based CF Industries completed its takeover of Sioux City's Terra Industries Thursday, but the impact the merger will have on the fertilizer industry is still uncertain.

Iowa Ag Secretary Bill Northey says farmers and retailers have some reservations about further consolidation of the fertilizer industry, but he's not sure if it will trigger a red flag for the Department of Justice.

"We already have a fertilizer industry that is fairly concentrated and in some cases that competition that is out there right now is between CF and Terra. If you take those and make them one company you don't have competition at some of the price points out there or some of the locations out there," Northey said.

Northey doesn't think combining the two companies will affect the supply of fertilizer. However, he says with one less outlet in the market, prices may go up in some areas.

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