War With Iran Adds to Woes of Pessimistic American Farmers

Soaring fertilizer and fuel costs from the conflict put further strain on an already stressed agricultural economy.

Mar. 12, 2026 at 2:53pm

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Even before the war in Iran raised fertilizer and diesel costs, a majority of American farmers said they were 'much worse off' or 'somewhat worse off' than one year ago, with the high cost of essential inputs like fertilizer and fuel being their biggest concern. The war has only exacerbated these pressures, with prices for key farming supplies skyrocketing as shipments through the Strait of Hormuz are disrupted. Farmers are now facing the prospect of a third or fourth consecutive year of losses, with the difference between profit and loss hinging on whether they were able to lock in prices for inputs before the conflict began.

Why it matters

The American agricultural economy has been under stress for years, with pandemic disruptions, the war in Ukraine, and rising inflation all contributing to soaring input costs while crop prices have remained stagnant. The war in Iran represents another major blow to an already fragile farming sector, potentially pushing many producers into bankruptcy and threatening the nation's food supply.

The details

The war in Iran has sent prices for key farming inputs like fertilizer and diesel fuel soaring. The cost of a gallon of diesel is up almost $1 in just the last week, while the price of a ton of urea fertilizer has jumped from $470 to $585 at the port in New Orleans. This comes on top of already high input costs that have been squeezing farmers' profit margins for years. Some farmers were able to lock in prices for fertilizer and fuel before the conflict began, but many others did not, leaving them vulnerable to the price spikes.

  • In January 2026, a survey by Pro Farmer found that a majority of farmers said they were 'much worse off' or 'somewhat worse off' than a year earlier.
  • The war in Iran began in early 2026, further disrupting global supply chains for agricultural inputs.

The players

Harry Ott

The president of the South Carolina Farm Bureau.

Andy Jobman

A farmer who grows 2,500 acres of corn, soybeans, and alfalfa in central Nebraska.

John Newton

The chief economist at the American Farm Bureau Federation, an agricultural lobbying organization.

Zippy Duvall

The president of the American Farm Bureau.

Samuel Taylor

Leads Rabobank's farm inputs division.

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What they’re saying

“Even before any of this happened, we were already at a break-even or lose proposition on most row crops in South Carolina.”

— Harry Ott, President, South Carolina Farm Bureau

“Luckily for us, we have made most of our purchases already on the nitrogen products.”

— Andy Jobman, Farmer

“Like oil, global fertilizer markets are highly vulnerable to disruptions in maritime transit routes, especially through the Strait of Hormuz. Acting quickly to prevent disruptions in fertilizer supply chains will help avoid additional financial strain on farmers and ensure that U.S. farmers have the supplies they need to feed families across America.”

— Zippy Duvall, President, American Farm Bureau

“The longer this goes on, the more the intermediate supply chains break down and it takes longer to put back together.”

— Samuel Taylor, Rabobank Farm Inputs Division

What’s next

The U.S. government is considering deploying the Navy to escort ships carrying fertilizer through the Strait of Hormuz in order to help ensure a steady supply for American farmers.

The takeaway

The war in Iran has exacerbated an already dire situation for American farmers, who were already facing high input costs, low crop prices, and the lingering effects of the pandemic and trade wars. This latest crisis threatens to push many producers into bankruptcy and jeopardize the nation's food security, underscoring the need for policymakers to provide urgent support and relief to the agricultural sector.