The war in Iran is pushing up prices for already-strained farmers, with higher costs for fertilizer and energy on top of last year’s tariffs. And the increasing pressure on American agriculture could lead to even bigger price tags at the grocery store.
John Yeley, an Illinois farmer who grows corn and soybeans, said prices for nitrogen — a key fertilizer component — are going up so fast that he can’t even get suppliers to commit to a price ahead of purchases.
“When I call a retailer right now … I could not get a price on any nitrogen source out there,” he said.
The war has effectively blocked the Strait of Hormuz, a major chokepoint through which one-fifth of the world’s oil and one-third of the world’s fertilizer pass. It’s a shock to the global fertilizer supply as American farmers prepare for the spring planting season, which can start as early as March.
While most fertilizer used on US farms is made in North America, the rising cost of natural gas means American-made fertilizer will get more expensive as well. The price for imported urea, a crystallized form of nitrogen that powers much of the world’s farming, has risen by close to a third since the US and Israel attacked Iran, according to FactSet.
Yeley told CNN that since the war in Iran, only one supplier has given him a quote for nitrogen prices; he usually uses several suppliers based in various locations.
The strain on farmers could drive up grocery costs, which have been a significant source of stress for millions of Americans for months. Even before the war began, USDA economists projected that food prices this year would rise more than in 2024 or 2025.
“When farmers face supply shortages or major price increases, those impacts ripple through the entire food chain,” said Zippy Duvall, president of the American Farm Bureau Federation, at a press conference two weeks ago.
Source: CNN
