California Farmers Suffer as Iran War Disrupts $1.7M Nut Shipment

Escalating costs for fertilizer and fuel add to the pain for the state's agricultural sector.

Mar. 29, 2026 at 6:09pm

Got story updates? Submit your updates here. ›

A $1.7 million shipment of California nuts destined for the Middle East was diverted due to the ongoing war between the U.S. and Iran, highlighting the struggles faced by the state's farmers. The conflict has disrupted export markets and driven up the costs of essential farm inputs like fertilizer and diesel fuel, putting additional strain on an already fragile agricultural economy.

Why it matters

California's agricultural sector is a vital part of the state's economy and a major contributor to the nation's food supply. The impact of the Iran war on this industry threatens the livelihoods of farmers and could lead to higher prices for consumers.

The details

A Tulare County nut company had shipped 15 containers of almonds, walnuts and pistachios worth $1.7 million from the Port of Long Beach, destined for the Port of Jebel Ali in Dubai. But the conflict in the Middle East diverted one ship to the Netherlands and another to Algeria, with the remaining cargo offloaded at the Port of Fujairah in the UAE. Shipping costs to the region have tripled to $7,500 per container, and the company is uncertain when it will get paid. The war has also driven up the costs of essential farm inputs like fertilizer and diesel fuel, which now averages $7.26 per gallon in California.

  • The $1.7 million shipment of California nuts was diverted in late March 2026.
  • Shipping costs to the Middle East have tripled since the start of the Iran war.

The players

Sequoia Nut Co.

A Tulare County, California-based company that exports nuts to the Middle East.

Veronica Nigh

An economist with the Fertilizer Institute, discussing the impact of the war on essential farm inputs.

Faith Parum

An economist with the American Farm Bureau, warning about the threat to national food security.

Tara Gallegos

A spokesperson for California Governor Gavin Newsom, acknowledging the struggles of the state's farmers.

Rob Larew

The president of the National Farmers Union, calling on Congress to support family farmers.

Got photos? Submit your photos here. ›

What they’re saying

“This is different than anything we've experienced before, in that it is not occurring in a single market, and that it is something that is a critical input to growers around the world.”

— Veronica Nigh, Economist, Fertilizer Institute

“How do we make sure that we keep farmers in business? Because it is a matter of national security and food security.”

— Faith Parum, Economist, American Farm Bureau

“California farmers are getting hit twice with higher fertilizer costs and higher fuel costs. Every American will wind up paying for that at the grocery store because these commodities are priced globally.”

— Tara Gallegos, Spokesperson, Governor Gavin Newsom

What’s next

Lawmakers are expected to hold hearings on the impact of the Iran war on the U.S. agricultural sector and consider measures to provide relief for struggling farmers.

The takeaway

The disruption caused by the Iran war to California's agricultural exports and the rising costs of essential farm inputs like fertilizer and fuel threaten the viability of family farms and the nation's food security. This crisis underscores the need for policymakers to prioritize supporting American farmers and ensuring the resilience of the country's food supply.