North Carolina Farmers Struggle with War and Drought

Rising fuel and fertilizer costs, coupled with severe drought, create new challenges for the state's agricultural industry.

Mar. 26, 2026 at 11:07pm

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North Carolina farmers are facing a perfect storm of challenges, including the impact of the ongoing conflict between the U.S. and Iran disrupting fertilizer supplies, as well as a severe drought affecting crop yields and livestock. Farmers like Alan Williams are seeing diesel fuel prices surge by over $2 per gallon in just a few weeks, while nitrogen fertilizer costs have jumped 40-60% since the start of the conflict. On top of these supply and price issues, central North Carolina is also battling extreme drought conditions, forcing farmers to buy expensive hay to feed their cattle.

Why it matters

The disruptions to the global fertilizer supply chain and the local drought conditions are creating significant financial strain for North Carolina's agricultural industry, which is a major economic driver for the state. Farmers are facing difficult choices as they try to balance rising production costs with the need to maintain crop yields and livestock health.

The details

The ongoing conflict between the U.S. and Iran has disrupted the flow of fertilizer through the Strait of Hormuz, a critical shipping route. About a third of the world's seaborne fertilizer passes through this strait, and the blockade has fueled massive price increases for nitrogen fertilizer, a staple for crop production. Nitrogen prices have surged 40-60% since the start of the conflict, going from around $620 per ton to $950 per ton. Farmers are scrambling to secure limited supplies, with Tim Gilliam of Camp Chemical Corporation saying "Everybody's been scared that they wouldn't get it. So as the price is going up, they're just buying kind of crazy." In addition to the fertilizer crisis, central North Carolina is also experiencing severe drought conditions, drying up ponds and pastures and forcing farmers like Alan Williams to buy expensive hay to feed their cattle.

  • The ongoing conflict between the U.S. and Iran began in early 2026.
  • Fertilizer prices have surged over the past 4 weeks.
  • Planting season in North Carolina is just weeks away.

The players

Alan Williams

A fifth-generation farmer in Person County, North Carolina.

Tim Gilliam

The president of Camp Chemical Corporation, a company that supplies fertilizer to farmers across the region.

The Fertilizer Institute

A trade association that warns American farmers could face a shortfall of 2 million tons of urea fertilizer this spring.

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What they’re saying

“My diesel fuel for my tractors has went up $2 a gallon over the last four weeks. And the diesel fuel for my trucks and road tractors, it's gone up from $3.39. I paid $5.59 this morning. That's a bigger problem.”

— Alan Williams, Farmer

“It's going to be tight. You're going to be pinching pennies.”

— Alan Williams, Farmer

“I hope the war ends today or tomorrow, and things will go back to normal.”

— Tim Gilliam, President, Camp Chemical Corporation

“Granular nitrogen was about $620 a ton before the war. It's about $950 right now.”

— Tim Gilliam, President, Camp Chemical Corporation

What’s next

Farmers in North Carolina will be closely monitoring the ongoing conflict and any developments that could further disrupt fertilizer supplies as they prepare for the upcoming planting season. They will also be hoping for relief from the severe drought conditions affecting the region.

The takeaway

The confluence of the U.S.-Iran conflict disrupting global fertilizer supplies and the severe drought in North Carolina is creating a perfect storm of challenges for the state's agricultural industry. Farmers are being forced to make difficult financial decisions to keep their operations afloat, underscoring the vulnerability of local food production to global events and climate change.