Soaring Fertilizer and Fuel Costs Squeeze Iowa Farmers Amid Iran War

Skyrocketing prices for key agricultural inputs add to financial strain on U.S. farm sector already reeling from pandemic and trade disruptions.

Mar. 29, 2026 at 12:44am

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A minimalist, abstract illustration using bold geometric shapes and primary colors to conceptually represent the economic pressures facing the U.S. farm sector due to rising input costs.The escalating costs of essential agricultural inputs like fertilizer and fuel threaten the financial stability of American farms.Vinton Today

The ongoing war in Iran has led to a sharp rise in the prices of ammonia and urea, two critical fertilizer ingredients, as well as a 43.5% jump in diesel fuel costs. These surging input prices are piling on to an already struggling U.S. farm economy, with one Iowa farmer warning "it couldn't have come at a worse time." Experts say the ripple effects will impact both food producers and consumers.

Why it matters

The steep increases in fertilizer and fuel costs come at a particularly challenging time for American farmers, who were hoping to recover from pandemic-related losses and a rise in farm bankruptcies in 2024. The added financial strain threatens the viability of many family farms and could ultimately lead to higher food prices for consumers.

The details

The price of ammonia, a key fertilizer ingredient, has risen around 20% since the start of the Iran war, while the price of urea has jumped approximately 50%. Additionally, the cost of diesel fuel has climbed 43.5%. These escalating input prices are squeezing profit margins for farmers like Lance Lillibridge of Vinton, Iowa, who says his overall costs have already increased 25% from last year. Lillibridge worries the situation will deter the next generation from taking up farming, stating "If our kids see us struggling out here, why would they want to take it on?"

  • The Iran war began in early 2026.
  • Ammonia prices have risen around 20% since the start of the Iran war.
  • Urea prices have jumped approximately 50% since the start of the Iran war.
  • Diesel fuel prices have climbed 43.5% since the start of the Iran war.

The players

Lance Lillibridge

A farmer in Vinton, Iowa who has been farming his whole life and is concerned about the impact of rising fertilizer and fuel costs on his operation and the broader agricultural sector.

Scott Marlow

An agricultural policy expert and former deputy administrator of farm programs at the USDA Farm Service Agency, who warns that the current situation "will have significant ramifications for both those who produce our food, and for those who eat it."

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What they’re saying

“It couldn't have come at a worst time.”

— Lance Lillibridge, Farmer

“This situation is not driven by either the person producing the food or the person buying it. And it will have significant ramifications for both those who produce our food, and for those who eat it.”

— Scott Marlow, Agricultural policy expert and former USDA official

What’s next

Farmers and policymakers will be closely monitoring the ongoing situation with the Iran war and its impact on agricultural input costs. Any resolution to the conflict that could stabilize fertilizer and fuel prices would provide much-needed relief to the struggling farm sector.

The takeaway

The ripple effects of the Iran war are exacerbating an already difficult situation for American farmers, who were hoping to recover from pandemic-related losses. The steep rise in fertilizer and fuel costs threatens the financial viability of many family farms and could ultimately lead to higher food prices for consumers, underscoring the interconnected nature of global conflicts and local food production.