OSHA's policy on fertilizer could hurt farmers and others

September 14th, 2015 by Dakota Software Staff Industry News

The U.S. Occupational Health and Safety Administration's policy change on anhydrous ammonia fertilizer facilities could put a lot of producers and farmers out of business due to safety compliance requirements. The policy change, which gives facilities until January 21 to meet the new safety compliance policy changes, came after a ammonium nitrate explosion at the West Texas Fertilizer Company in 2013. Doug Goehring, the agriculture commissioner of North Dakota, told the Bismark Tribune the OSHA policy change comes from ignorance of what happened in 2013. 

"I think it shows the lack of knowledge of the explosion and what caused it," Goehring told The Tribune. "This is way off target and doesn't address the issue."

The new policy places all anhydrous ammonia facilities under a different regulatory classification. If the policy goes into effect, it will greatly increase the number of rules and regulations to which a facility will have to adhere.

"I would liken it to a gas station having the same regulatory compliance as an oil refinery," Farm and Ranch Guide reported Goehring saying. "It's onerous, it's burdensome and it's costly."

Goehring went on to say facilities handling anhydrous ammonia are already regulated and safe. He said the cost of OSHA's new policy will be large. 

According to The Tribune, industry representatives speculated as to whether or not small retailers can afford to stay open if the new regulations are in place. Industry reps fear that closings could affect around a third of all North Dakota's facilities. Compliance with the new rules could cost anywhere from $18,000 to $30,000, according to The Tribune. 

"That's significant for a business to withstand," Goehring said.

Higher facility costs means higher prices for farmers
Those costs will filter down through the system, raising prices for farmers and causing them to have to drive farther to get the fertilizer they need. 

"To raise costs to the farmer [while crop prices are down], it's really poor timing," Terry Weckerly of the North Dakota Grain Growers told The Tribune. 

Goehring expressed concerns that the new policy could ultimately increase safety concerns because more fertilizer will need to be shipped longer distances. This will become an issue if facilities are forced to change due to the new regulations. Farmers will still need the fertilizer and it will have to be shipped to them if facilities close. The more anhydrous ammonia has to be shipped, the greater the chance of something going wrong. 

OSHA didn't incorporate stakeholder feedback
According to Farm and Ranch guide, Goehring said OSHA didn't follow an executive order to seek and incorporate stakeholder feedback before making the decision. Wayne Stenehjem, North Dakota attorney general, said rule-making procedures should apply despite the fact that this was a policy change and not a rule change. 

"The proprietors and the employees of these facilities are entitled to have a voice regarding this new OSHA policy," Goehring told The Tribune.

According to Farm and Ranch Guide, Goehring said that the North Dakota Department of Agriculture is working to ensure that facilities, farmers and operators aren't forced out of business.