War-driven fertilizer surge alarms U.S. farmers as planting season begins
Farm groups warn the Middle East conflict is disrupting fertilizer markets and pushing input costs higher just as U.S. farmers prepare for spring planting.
The American Farm Bureau Federation warned Monday that the war involving Iran in the Middle East is already disrupting fertilizer markets, raising input costs for U.S. farmers just as spring planting begins in 2026 and prompting calls for the Trump administration to protect global fertilizer supply chains.
Farm leaders say rising fertilizer and fuel prices tied to shipping disruptions in the Strait of Hormuz could increase production costs across major crops, including corn, cotton and soybeans, threatening farm margins and potentially affecting planting decisions nationwide.
In a letter sent Monday to President Donald Trump, the American Farm Bureau Federation (AFBF) asked the administration to take immediate steps to protect fertilizer shipments moving through the Strait of Hormuz, one of the world's most critical energy and commodity trade routes.
Map from the American Farm Bureau Federation highlights U.S. fertilizer imports. While the U.S. buys limited fertilizer directly from the Middle East, the global nature of the market is already pushing prices higher, raising concerns among farmers about increases on supplies already stored domestically. (Source: AFBF)
Farm Bureau President Zippy Duvall warned the timing of the conflict could not be worse for American producers.
The crisis is unfolding "just as America's farmers begin to put seeds in the ground for spring planting," Duvall said, noting that disruptions to fertilizer supplies could ripple across the entire agricultural supply chain.
The organization also called on the administration to temporarily suspend countervailing duties on imported fertilizer products and ensure that shipping lanes remain open to prevent shortages and price spikes.
Farmers across several states reported rapid increases in fertilizer prices within days of the conflict escalating, even for supplies already stored domestically.
Harry Ott, president of the South Carolina Farm Bureau, said his fertilizer dealer initially refused to quote prices or deliver product following the outbreak of hostilities.
When new prices were finally offered, urea fertilizer costs had jumped by $150 to $200 per ton, even though the product had already been stored locally before the conflict began.
Urea is a critical nitrogen fertilizer used widely in row crops and accounts for about half of the nitrogen applied to Ott's corn and cotton fields.
The sudden price spike could add roughly $100 per acre in unexpected production costs, a major burden for producers who were already facing tight margins.
"We're being asked to grow a crop with hardly any chance of making a profit," Ott said.
Market data shows fertilizer prices rising sharply as traders react to potential supply disruptions across the Middle East.
The price of urea loaded on barges in New Orleans climbed nearly 25% since late February, increasing from $465 per ton on Feb. 27 to about $580 per ton.
Energy markets have also reacted to the conflict. Brent crude oil briefly surged above $110 per barrel, its highest level since 2022, before settling below $100. Oil prices had been around $72 per barrel before the conflict escalated on Feb. 28.
Higher fuel prices are expected to raise transportation costs throughout the agricultural supply chain, increasing diesel surcharges for fertilizer deliveries and other farm inputs.
According to the U.S. Census Bureau, the United States imports roughly 5 million metric tons of urea annually, with Russia and Qatar among the largest suppliers. Urea accounts for 15% to 20% of total nitrogen demand in U.S. agriculture.
Even before the geopolitical crisis, farmers were facing rising production expenses and stagnant commodity prices.
Fertilizer costs were already about 15% higher than a year earlier, with urea prices 12% above 2025 levels before the conflict began.
Many producers had also reduced forward purchases of fertilizer due to financial pressure. In some cases, farmers who waited to secure supplies are now facing dramatic price increases for the remaining inputs they need for the season.
One North Dakota producer reported fertilizer costs increasing by nearly $20,000 after locking in remaining supplies at higher prices, according to Farm Bureau economists.
Farm groups warn that soaring fertilizer costs could alter planting plans across major crop regions.
Corn, which requires heavy nitrogen fertilization, is particularly sensitive to fertilizer price swings. As costs rise, some farmers may shift acreage toward soybeans or other crops that require fewer nitrogen inputs.
The Farm Bureau cautioned that if fertilizer supplies tighten or costs continue to climb, the effects could extend beyond farm profitability and into broader food markets.
In its letter to the White House, the organization warned that supply chain disruptions could trigger food inflation pressures similar to those seen in 2022, when grocery prices surged to 40-year highs.
To prevent deeper disruptions, Farm Bureau leaders are urging the administration to secure maritime shipping routes, expand fertilizer import flexibility, and improve domestic logistics capacity to ensure farmers receive critical inputs before planting deadlines arrive.
