Koch Industries, Iran, and Fertilizer Costs: A Deep Dive
Rising food costs are impacting consumers globally, and a complex web of factors is contributing to the problem. Recent investigations reveal a potential link between Koch Industries, dealings with Iran, and the escalating price of nitrogen fertilizers – a critical component of modern agriculture. This article examines these connections, exploring how vertical integration, political lobbying, and international trade dynamics may be exacerbating the financial strain on farmers and, consumers.
The Role of Natural Gas in Fertilizer Production
Nitrogen fertilizers, specifically ammonia and urea, are not simply made *with* natural gas; they are made *from* natural gas. The manufacturing process involves stripping hydrogen atoms from methane and combining them with atmospheric nitrogen. Without a consistent supply of natural gas, fertilizer production grinds to a halt. While natural gas prices fluctuate, the ability of vertically integrated companies to control both feedstock and finished product offers a significant advantage.
Koch Industries’ Dominance and Vertical Integration
Koch Industries owns three oil refineries – Pine Bend in Minnesota, and facilities in Corpus Christi, Texas – and leverages its position in the oil and gas industry to dominate the fertilizer market. This vertical integration allows the company to control costs at multiple stages of production. When oil and natural gas prices rise, these costs are passed on to farmers. However, when natural gas prices fall, those savings are not consistently reflected in lower fertilizer prices. Instead, profits are reinvested into the manufacturing process and political lobbying efforts.
Political Influence and Lobbying
Pat McFerron, a lobbyist representing the Oklahoma District Attorneys Association, Tesla, BlackRock, and Koch Industries, exemplifies the company’s political reach. McFerron as well owns companies specializing in predicting court case outcomes and surveying potential voters. This influence extends beyond direct lobbying, shaping the regulatory landscape to benefit Koch Industries’ business interests.
Koch-Glitsch and Trade with Iran
Koch-Glitsch, a foreign subsidiary of Koch Industries operating out of Germany and Italy, reportedly sold petrochemical equipment to Iran through at least 2007, potentially circumventing U.S. Trade restrictions. Bloomberg News documented the transactions, and while Koch Industries claimed a legal loophole permitted the trade at the time, no federal conviction resulted. Newly released documents from the Jeffrey Epstein case also include references to Iran, ranging from claims of a meeting with a former Iranian president to allegations of arms trading and financial networks connected to Tehran.
The Epstein Connection
In August 2010, Jeffrey Epstein attended a screening and dinner party at the home of David and Julia Koch in Southampton. Attendees included prominent figures such as Steve Mnuchin, Rudy Giuliani, Wilbur Ross, Leon Black, Henry Kravis, and Steven Schwarzman. Winter Watch reported that Leon Black later disclosed payments of over $158 million to Epstein, leading to his resignation from Apollo Global Management. While Julia Koch’s name does not appear in Epstein-related documents, her address was recorded as a location visited by Epstein.
Consolidation in the Fertilizer and Refining Industries
The U.S. Petroleum refining industry has been consolidating for decades, with the number of refineries decreasing from 254 in 1982 to 131 in 2025. Statista reports that the number of companies operating these facilities has also declined. Marathon Petroleum, ExxonMobil, and Valero Energy now control a significant share of the national refining capacity. Similarly, just four corporations – CF Industries, Nutrien, Koch, and Yara-USA – represented 75% of total domestic fertilizer production as of 2019.
Rising Costs and Future Outlook
Fertilizer prices across all major categories are currently higher than they were a year ago. The Energy Information Administration (EIA) projects natural gas prices to average $4 per MMBtu in 2026, a 16% increase from 2025 levels. Farm Progress reports that natural gas and anhydrous ammonia prices are expected to double by the conclude of the year. These increased costs are passed down to farmers and ultimately reflected in higher food prices for consumers.
The companies best positioned to navigate these challenges – like Koch Industries – are those that control all aspects of the supply chain. The burden of rising costs falls on everyone else.