Iran War: Fertilizer Costs Cripple US Farmers 🌾🇺🇸

U.S. farmers are facing mounting economic pressure from dramatically increased fertilizer prices, exacerbated by disruptions to global trade routes stemming from the conflict in the Middle East. The rising costs, coupled with dwindling commodity prices, are threatening the long-term sustainability of many farms across the country.

Fertilizer Costs Surge Amidst Geopolitical Tensions

Rodney Bushmeyer, a third-generation farmer in Illinois, has been farming for as long as he can remember. Bushmeyer Farms, dating back over 100 years to his ancestors’ arrival from Germany, is now feeling the strain of escalating fertilizer costs.

“There is really no profit right now,” Bushmeyer said. “It’s not sustainable in the long term. We can do that for a few years, but eventually it’ll put us out of business.”

The situation has intensified in recent weeks as Iran closed the Strait of Hormuz, a critical route for fertilizer production and transportation, with efforts to reopen it stalled. This closure comes during the crucial U.S. spring planting season, adding to years of financial hardship for farmers.

Global Fertilizer Trade Disrupted

Matt Bennett, CEO of AgMarket and a seventh-generation grain farmer, described the current situation as “not a great time for the grower.” The Middle East plays a vital role in global fertilizer trade, accounting for 35% of global urea trade and roughly 20% of phosphate trade, according to Chris Yearsley, CEO and head of nitrogen at Profercy.

The U.S. imports approximately 25% of its total fertilizer use, including 18% of its nitrogen use, according to the American Farm Bureau.

Nitrogen prices have nearly doubled since the shipping channel closed. Benchmark New Orleans nitrogen prices rose from $350 a short ton in late December to $470 in late February, and were trading around $600 as of March 10.

Economic Strain on Farmers

Fertilizer represents a significant cost for farmers, accounting for up to 20% of total production expenses for corn, the U.S.’s largest crop, according to the USDA. Farmers have struggled with costs exceeding harvest prices for at least three years, and the USDA had forecast lowered profits for 2026 even before the recent price spike.

Philip Coffin, an independent grain industry analyst, noted that “With crop economics as bad as they are right now, it doesn’t take much to destroy (a farmer’s) income statement.”

In 2025, federal subsidies, including $12 billion in bridge loans offered by the USDA to farmers affected by tariffs, were crucial in preventing losses. Gregg Ibendahl, an associate professor at Kansas State University, said these payments “turned a really bad year into at least a mediocre year.”

Farmers Adapt and Worry About the Future

Lance Lillibridge, who farms 1,250 acres of corn in Iowa, recalled the farm crisis of the 1980s and the economic pressures faced by farmers. He emphasized the concentration of power within the fertilizer industry, stating, “They are able to manipulate markets. They have market power, and there’s not a damn thing that we can do about it right now.”

Lillibridge has already purchased fertilizer for the upcoming season, but worries about the long-term sustainability of current price levels. Angela Guentzel, a sixth-generation farmer and board member of the Minnesota Corn Growers Association, purchased fertilizer in the fall before the recent spike and utilizes modern technology for efficient application.

Guentzel stated that cuts will have to be made due to depressed crop prices and increased input costs. “If we can’t afford to put a crop in the ground, we then become more dependent on foreign nations to feed our own people,” she said.

The USDA is currently surveying farmers about their planting intentions, with results expected on March 31. Preliminary estimates already indicate a 4 million-acre shift from corn to soybeans, which require less fertilizer.

Bushmeyer remains hopeful despite the challenges. “My dad used to say, we’re at the mercy of the weather and the government, and we can’t control either,” he said. “When you grow up in this business, you just take whatever comes and you raise the best crop you can and the rest is up to God and mother nature.”