US Farmers Struggle with Soaring Fertilizer and Fuel Costs Amid Iran Conflict

Disruptions to global supply chains have driven up prices, forcing farmers to use less fertilizer and leading to concerns over food security and inflation.

Apr. 16, 2026 at 9:51am

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A geometric composition of overlapping triangles and rectangles in shades of blue, orange, and green, conceptually representing the complex economic factors affecting US farmers.Soaring agricultural input costs threaten the financial viability of US farms and raise concerns about food security and inflation.Washington Today

US farmers are facing significant financial strain due to skyrocketing fertilizer and fuel costs following disruptions linked to the ongoing conflict with Iran. A survey from the American Farm Bureau Federation found that 70% of US farmers say they cannot afford enough fertilizer for this growing season, while nearly 60% report worsening finances. The closure of the Strait of Hormuz, a key global trade route, has cut off access to over one-third of the world's fertilizer supply, driving prices up by over 30% since late February. Experts warn that lower crop yields could lead to higher food prices for consumers within months.

Why it matters

The surge in agricultural input costs threatens the financial viability of US farms and raises concerns about food security and inflation. With farmers forced to use less fertilizer, crop yields are expected to decline, potentially leading to shortages and higher prices for consumers. The situation also highlights the vulnerability of the global food system to geopolitical conflicts and supply chain disruptions.

The details

The ongoing conflict with Iran has severely disrupted global energy and agricultural supply chains. The blocking of the Strait of Hormuz has driven up fuel prices, while fertilizers, which rely on oil and natural gas, have also seen steep price increases. According to the American Farm Bureau Federation's Market Intel team, nitrogen fertilizer prices have risen over 30% since late February, and overall fertilizer and fuel costs are up 20-40%. Urea prices, a key nitrogen fertilizer, have jumped 47% in the same period. With farmers unable to afford sufficient fertilizer, crop yields are expected to decline, potentially leading to food shortages and higher prices for consumers.

  • In March 2026, Agriculture Secretary Brooke Rollins said the government is looking at ways to help farmers stay funded.
  • On April 15, 2026, President Donald Trump stated that the Iran conflict is 'close to over' and a potential deal could stabilize the markets, but experts questioned whether markets can stabilize quickly.

The players

American Farm Bureau Federation

A national organization representing the interests of US farmers and ranchers.

Brooke Rollins

The US Agriculture Secretary.

Donald Trump

The President of the United States.

Indermit Gill

The World Bank's Chief Economist.

Pamela Coke-Hamilton

The Executive Director of the International Trade Centre.

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What they’re saying

“'Spring planting decisions depend heavily on access to fertilizer and diesel fuel, both of which have been impacted by geopolitical risks that have disrupted global markets'.”

— Market Intel, Economic analysis team, American Farm Bureau Federation

“'There are significant issues with respect to availability of fertilisers and also there's a timeline for agriculture … which is being missed now'.”

— Pamela Coke-Hamilton, Head, International Trade Centre

“'Higher prices of fertilisers may result in countries halting their food exports to hoard more food, resulting in higher food inflation'.”

— Indermit Gill, Chief Economist, World Bank

What’s next

The government is looking at ways to help farmers stay funded, and a potential deal with Iran could help stabilize the markets, though experts are uncertain how quickly the situation can improve.

The takeaway

The surge in agricultural input costs due to the Iran conflict highlights the vulnerability of the global food system to geopolitical disruptions and supply chain issues. Policymakers and industry leaders will need to work together to address the immediate challenges facing farmers and ensure long-term food security.