American farmers are facing rising fertiliser and fuel costs linked to the ongoing U.S.-Israeli conflict with Iran, increasing pressure on an already strained agricultural economy.
The increase in farm input costs comes at a critical period for producers during the planting and growing season, with farmers reporting worsening financial conditions due to rising prices for fertiliser, diesel, and other agricultural inputs.
According to an analysis based on U.S. Department of Agriculture data and election results, 77.7 per cent of America’s farm-dependent counties supported President Donald Trump in the 2024 presidential election.
Farmers had already been affected by trade tensions and tariff-related disruptions before the latest increases in agricultural input costs tied to the Middle East conflict.
Faith Parum, an economist with the American Farm Bureau Federation, said rising costs are creating additional strain for producers nationwide.
In a summary of a survey involving more than 5,700 American farmers conducted in April, Parum wrote that rising input costs connected to the conflict “are adding strain to an already challenging farm economy.”
“Fertiliser affordability challenges are most acute in the South and Northeast but remain a concern for farmers across all regions,” Parum wrote. “Around 70 per cent of respondents report being unable to afford all the fertiliser they need.”
The report also noted that farm diesel prices have increased by 46 per cent since the end of February, raising production costs for land preparation, irrigation, and transportation of farm inputs and produce.
More than half of the surveyed farmers also reported worsening financial conditions linked to rising fertiliser and fuel prices during the spring planting season.
The Trump administration and Republican lawmakers have announced measures aimed at addressing the rising costs.
The Senate Committee on Agriculture, Nutrition, and Forestry scheduled a hearing to discuss possible legislative solutions focused on improving long-term fertiliser affordability and stability for farmers.
Committee Chairman John Boozman said farmers are increasingly worried about fertiliser costs ahead of the planting season.
“Farmers across Arkansas have told me that the cost and availability of fertiliser have always been a concern, but as they approach the planting season this year, it’s even more worrying,” Boozman said.
Agriculture Secretary Brooke Rollins said the administration is taking several steps to stabilise fertiliser supply and reduce prices.
According to Rollins, the government has increased efforts to expand domestic phosphate production by more than 200 per cent and potash production by over 100 per cent.
She added that the administration had suspended certain shipping restrictions on fertiliser imports from Venezuela and accelerated fertiliser production projects and investment programmes.
“This president remains resolute to do everything we possibly can to ensure that we are doing what we can to make sure that this doesn’t happen again with our fertiliser prices,” Rollins said.
Republican Senator Roger Marshall also introduced legislation aimed at reducing fertiliser costs by removing tariffs and countervailing duties on phosphate fertiliser imports from Morocco.
“Kansas farmers are getting hit by a fertiliser market that’s working against them,” Marshall said.
Democratic lawmakers, however, argued that the administration has not done enough to address the impact of rising costs on farmers.
Democratic National Committee Deputy Executive Director Libby Schneider said farmers are facing growing economic hardship.
“America’s farmers were already struggling to get by under Donald Trump and Brooke Rollins, and now Trump’s war with Iran has pushed farmers to a breaking point.”
“Trump tanked the agricultural economy with his reckless trade war, causing family farms to go bankrupt at record levels, and now his deadly and costly war with Iran has caused prices on everything from diesel to fertiliser to skyrocket,” Schneider added. “Farmers are scraping by to make ends meet under Trump, and Trump and Rollins have done nothing but turn their backs on them.”
Representative Betty McCollum of Minnesota linked rising farm costs to disruptions in global energy markets caused by the closure of the Strait of Hormuz.
“The closure of the Strait of Hormuz has made energy prices go up globally, and it’s increased the cost of living,” she said.
“Everything from what my farmers are paying for fertiliser, to the fuel that they’re putting in their tractors as they go out to the field, let alone what everyday Americans are doing gassing up.”
Senator Gary Peters of Michigan also highlighted concerns from farmers during a Senate hearing.
“Our farmers are paying because of fertiliser costs. We know that the whole world economy is paying a great deal for this war,” Peters said.
Industry stakeholders also warned that continued increases in oil prices could worsen fertiliser affordability challenges.
Terrence Duffy, Chairman and Chief Executive Officer of CME Group, said rising oil prices directly affect fertiliser production and agricultural costs.
“When you have the price of oil escalating, it’s going to have an impact on some of these other derivatives of the oil product itself, including fertiliser, plastics and other components,” Duffy said.
“So, it is concerning. I know that some of the farm communities that I’ve spoken to are switching to less intensive fertiliser products, such as nitrogen and similar products to grow their products. I don’t think they should be having to do that,” he added.
Secretary of State Marco Rubio said fertiliser supply disruptions are affecting Iran more severely.
“It’s the fertiliser that they need for their food and crops that’s stranded in the Persian Gulf, not our fertiliser, their fertiliser,” Rubio said during a White House briefing.
