Farmers Brace for Potential Farm Crisis Amid Rising Costs

Got story updates? Submit your updates here. ›

Farmers across America are facing a perfect storm of rising costs for fertilizer and diesel fuel, exacerbated by the ongoing war between the U.S., Israel, and Iran. This is putting immense pressure on an industry already struggling with consolidation, trade tensions, and slim profit margins. Experts warn that the situation could lead to further farm bankruptcies and higher food prices for consumers.

Why it matters

The farm crisis could have far-reaching implications, from reduced crop yields and higher consumer prices to potential long-term damage to the agricultural sector. As a major driver of the U.S. economy, the health of the farming industry is crucial, and the current pressures threaten the livelihoods of many family-owned operations.

The details

Farmers are seeing the cost of key inputs like fertilizer and diesel skyrocket in the wake of the U.S. and Israel's attack on Iran, which has effectively closed the Strait of Hormuz and disrupted global supplies. This is compounding existing challenges, such as industry consolidation and trade tensions that have squeezed profit margins in recent years. Many farmers are now being forced to make tough decisions, like using less fertilizer and risking lower yields, or passing on higher costs to consumers.

• In 2025, the number of Chapter 12 farm bankruptcies reached 315, up 46% from the previous year.
• On February 28, the U.S. and Israel attacked Iran, effectively closing the Strait of Hormuz and disrupting global fertilizer and fuel supplies.
• In late February, the price of a key nitrogen fertilizer was $795 per ton, but by the end of March it had jumped to $990 per ton.

What they’re saying

What’s next

The Biden administration has announced plans to convene an emergency summit with farm leaders and industry experts to discuss potential policy interventions to support the agricultural sector and mitigate the impact of the crisis on consumers.