Farmers Grapple with Surging Fertilizer Prices Amid Iran War

Rising costs of fertilizer and transportation put strain on agricultural producers

Mar. 18, 2026 at 11:53pm

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The ongoing war with Iran is driving up the prices of fertilizer, a critical input for farmers, as disruptions in the Strait of Hormuz disrupt the supply of urea, a key nitrogen source. This comes at the peak season for fertilizing fields, forcing farmers to contend with higher production and transportation costs that are expected to lead to increases in grocery prices, particularly for chicken and beef.

Why it matters

The spike in fertilizer prices due to the Iran conflict is the latest economic ripple effect of the war, adding to the burden on farmers and consumers alike. As a major agricultural region, the rising costs will impact both local producers and the broader food supply chain.

The details

Fertilizer prices have climbed from around $565 per ton to $790 per ton since the start of the war, according to local agriculture extension agent Johnny Gunsaulis. This, combined with higher diesel costs, is making production and transportation more expensive for farmers. Experts warn that these increased costs will likely be passed on to consumers, leading to higher grocery prices, especially for meat products like chicken and beef which are major agricultural outputs in the region.

  • The war with Iran began in early 2026.
  • Fertilizer prices started rising sharply at the start of the war.

The players

Johnny Gunsaulis

An Arkansas agriculture extension agent who has observed the rising fertilizer prices in the region.

Tomas Jandik

A professor of finance at the University of Arkansas who expects the higher costs to lead to persistent increases in grocery prices.

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What they’re saying

“There's some fear that they're going to go up quite a bit more. I think everyone's just hoping that this is not going to be a long-term deal.”

— Johnny Gunsaulis, Arkansas agriculture extension agent

“I think that grocery prices are destined to increase, at least temporarily, even if war ended today. It takes some time for the supply chain to transfer all the increased cost to the final customer. It's simply the inevitable consequence of energy costs massively increasing.”

— Tomas Jandik, Professor of finance, University of Arkansas

What’s next

Farmers and industry experts will continue to monitor fertilizer and energy prices in the coming months to assess the long-term impact on agricultural production and consumer food prices.

The takeaway

The Iran conflict is adding to the economic pressures facing farmers, who must now contend with sharply higher costs for critical inputs like fertilizer. This strain on agricultural producers is expected to translate into higher grocery bills for consumers, underscoring the far-reaching consequences of the ongoing war.