Idaho Farmers Grapple with Soaring Fertilizer and Diesel Costs Amid Iran Conflict

War disrupts global supply chains, driving up prices for essential farm inputs during critical growing season

Apr. 11, 2026 at 4:40am

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A geometric composition of overlapping triangles and rectangles in shades of blue, green, and yellow, conceptually representing the economic pressures facing Idaho farmers due to rising fertilizer and fuel prices.Soaring input costs threaten the financial stability of Idaho's family farms during a critical growing season.Twin Falls Today

The ongoing conflict between the United States and Iran has severely impacted Idaho's agricultural sector, with skyrocketing prices for diesel fuel and fertilizer squeezing farmers' operating budgets at a crucial time of the growing season. Experts say the closure of the Strait of Hormuz and China's halt on fertilizer exports have disrupted global supply chains, leading to 30-40% increases in the cost of essential farm inputs like nitrogen, phosphate, and diesel.

Why it matters

Idaho's agricultural industry is a major economic driver for the state, with farmers producing a wide variety of crops from potatoes to wheat. The sudden surge in input costs threatens to undermine the profitability and viability of many family-owned farms, potentially impacting the state's overall economic health and food security.

The details

According to Xiaoli Etienne, a professor at the University of Idaho, the war with Iran has had an outsized impact on the cost of nitrogen fertilizer, which has risen by as much as 40% at the farm gate level. Additionally, the closure of the Strait of Hormuz has disrupted global phosphate trade, with Saudi Arabia accounting for nearly 20% of worldwide phosphate exports. Meanwhile, China's decision to halt fertilizer exports to secure its own domestic planting season has further exacerbated the supply crunch. The rising cost of diesel fuel, which makes up over 30% of farmers' operating expenses, is also posing a significant challenge, with no easy substitutes available.

  • The war with Iran began escalating in early 2026.
  • China halted fertilizer exports a couple of months ago.
  • Farmers typically secure their fertilizer supplies before the growing season, which is now underway in Idaho.

The players

Xiaoli Etienne

A professor at the University of Idaho who specializes in agricultural economics.

Idaho Farmers

The agricultural producers in the state of Idaho who are facing rising input costs due to the global supply chain disruptions caused by the Iran-US conflict.

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What they’re saying

“We have seen as much as 40% increase at the farm gate level for producers. And so for southern Idaho, the number might be a little different, but I suspect it's very similar magnitude.”

— Xiaoli Etienne, Professor, University of Idaho

“You think about your operating costs, over 30% is used to purchase fertilizer. And we see 30 to 40% increase in the fertilizer prices. And combined, that's a very big impact on the farmers.”

— Xiaoli Etienne, Professor, University of Idaho

“For diesel, that's a different story. This will probably have a more immediate impact for the producers.”

— Xiaoli Etienne, Professor, University of Idaho

“Even with a ceasefire, or even if the war stops, the production time for fertilizer has already been lost. And that's a very long supply chain. The impact will show up, still show up. It's not going to go away.”

— Xiaoli Etienne, Professor, University of Idaho

“Farmers are resilient. We have seen over and over again farmers are able to overcome all those shocks they're putting on them.”

— Xiaoli Etienne, Professor, University of Idaho

What’s next

Experts say that even if a ceasefire is reached between the US and Iran, the disruption to global fertilizer supply chains will continue to impact Idaho farmers for the foreseeable future, as it takes time to ramp up production. Farmers will need to adapt by exploring alternative crops, reducing fertilizer application, and finding ways to offset the higher diesel costs.

The takeaway

The ongoing conflict between the US and Iran has created a perfect storm for Idaho's agricultural sector, with skyrocketing prices for essential farm inputs like fertilizer and diesel fuel threatening the viability of many family-owned farms. While farmers are known for their resilience, the scale of the current crisis may require government intervention and support to ensure the long-term sustainability of the state's vital agricultural industry.