War Impacts Central Illinois Farmers' Costs

Fertilizer, fuel prices soar amid US-Iran conflict, adding to financial strain

Mar. 13, 2026 at 10:21pm

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The ongoing war between the United States, Israel, and Iran is driving up prices of key inputs like fertilizer and fuel for farmers in Central Illinois, exacerbating an already difficult financial situation for the agriculture industry in the region.

Why it matters

The price hikes on essential farming supplies come at a time when the farm economy in Central Illinois was already struggling, putting additional strain on local producers and potentially impacting crop yields and consumer food prices.

The details

Prices for fertilizer and both gas and diesel fuel have risen sharply since the start of the US-Iran conflict on February 28th. Fertilizer costs have increased by hundreds of dollars per ton, while gas prices in Illinois are up $0.60 per gallon and diesel is over $1 higher per gallon compared to 30 days ago. The disruption of phosphate and nitrogen imports through the Strait of Hormuz has contributed to the fertilizer price spike.

  • The US-Iran war began on February 28, 2026.
  • Gas prices in Illinois are $0.60 higher than 30 days ago.
  • Diesel prices in the Champaign-Urbana area are over $1 higher than 30 days ago.

The players

Bailey Conrady

The manager of the Champaign County Farmer's Bureau.

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What they’re saying

“When you have high input costs and you aren't getting as much for your corn or soybeans, you know, that hurts. That doesn't work well on a balance sheet.”

— Bailey Conrady, Manager, Champaign County Farmer's Bureau

“Fuel costs have gone up. I mean both gas and then the diesel we use on the farm, and the tractors and things.”

— Bailey Conrady, Manager, Champaign County Farmer's Bureau

“We have also seen the cost of fertilizers going up. We're talking about a couple of hundred dollars a ton. It's been a quick increase, somewhat like fuel costs.”

— Bailey Conrady, Manager, Champaign County Farmer's Bureau

What’s next

Farmers are hoping for a good crop yield this year despite the financial challenges, but the impacts of the rising input costs may continue to be felt through the fall harvest season.

The takeaway

The escalating US-Iran conflict is exacerbating an already difficult economic situation for farmers in Central Illinois, raising the costs of essential supplies like fertilizer and fuel at a time when the regional farm economy was already strained. This could lead to higher food prices for consumers and potentially impact crop yields if the financial pressures on local producers persist.