Agricultural Chemical Manufacturers NAICS 3253

Jan 18, 2026 - Renewed Concerns About Glyphosate

• The retraction of a foundational 25-year-old glyphosate safety study is creating major uncertainty around glyphosate, the active ingredient in Roundup, a contentious weedkiller used on hundreds of millions of acres of farmland, The New York Times reported in January. Glyphosate is the backbone of US herbicide markets and the study has long served as a regulatory pillar supporting its safety. Its withdrawal, due to undisclosed Monsanto involvement and ethical concerns, intensifies scrutiny ahead of the EPA’s required 2026 re‑evaluation of the chemical. This raises the risk of tighter regulations, new labeling requirements, or potential usage restrictions. Advocacy groups and political pressure are amplifying calls for reassessment, while emerging research linking glyphosate to cancer further complicates the regulatory landscape. For manufacturers, the fallout threatens product portfolios, liability exposure, and long‑term demand for glyphosate‑based chemistries.
• The 2026 outlook for the chemical industry is cautiously optimistic, with the sector showing resilience despite weak demand, trade uncertainty, and uneven industrial recovery, Chemical Processing reported in January. US chemical production grew only 0.7% in 2025 and is expected to rise just 0.4% this year, reflecting flat volumes across most segments. Specialty and agricultural chemicals were bright spots in 2025, while consumer chemicals and plastic resins declined. Global growth remains moderate, and supply‑chain regionalization continues to reshape trade flows, contributing to falling US chemical exports and imports. High borrowing costs and tariff‑driven uncertainty are slowing capital spending, though long‑term investment is expected to accelerate after 2027. Key end‑use markets, including autos, housing, and construction, remain soft, limiting near‑term demand. Even so, the industry benefits from strong US feedstock advantages, advanced manufacturing investment, and rising demand for high‑value materials.

• The proposed merger of Union Pacific and Norfolk Southern railroads has raised alarm among major industrial users, particularly chemical manufacturers, according to the American Chemistry Council. The ACC warns that combining the two rail giants could significantly reduce competition, raising freight costs and undermining service reliability across critical supply chains. Rail is a key mode of transport for chemical makers. With fewer railroads, companies could be stuck with limited shipping options and higher rates, putting US production at a competitive disadvantage globally. The ACC is advocating for stricter regulatory review and calling for policy interventions to preserve rail-to-rail competition rather than enabling greater railroad consolidation. The proposed $85 billion deal was approved by the companies’ shareholders in November but faces opposition from several state attorneys general.
• Producer prices for pesticide, fertilizer, and other agricultural chemical manufacturers rose 9.2% in August compared to a year ago, after inching up 0.5% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices are rebounding after falling sharply from their highs in 2022, when Russia’s war in Ukraine triggered global disruptions in the fertilizer market. Employment by makers of agricultural chemicals shrank 0.3% year over year in July, while the average industry wage increased 2.4% YoY in August to $31.49 per hour, down $0.40 from its high in July, BLS data show.