Soaring Fertilizer and Fuel Costs Squeeze Nebraska Farmers

War in the Middle East drives up prices, forcing farmers to rethink planting plans and brace for ripple effects on state's economy and food supply

Published on Mar. 10, 2026

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The war in the Middle East has driven up fertilizer prices by more than 30% since February and sent diesel prices soaring, forcing many Nebraska farmers to cut back on nutrients, rethink their planting plans, and brace for the ripple effects on the state's economy and food supply. Farmers are facing an unprecedented 'worst-case scenario' as they prepare to plant their crops, with some places unable to even provide a price for fertilizer due to shortages.

Why it matters

Nebraska's agricultural economy is a major driver of the state's overall economic health, so disruptions to fertilizer and fuel supplies pose a serious threat. The state's farmers play a crucial role in the national food supply, so any cutbacks in planting or yields could have wider ramifications.

The details

Fertilizer prices have jumped from around $800 per ton to $1,000 or more in some areas, while diesel costs are up $1 per gallon compared to last year. Farmers are now having to make difficult decisions about how much fertilizer they can afford to apply, which could impact crop yields. Some are even considering shifting away from nutrient-intensive crops like corn to soybeans. The situation is exacerbated by supply chain issues, with some suppliers unable to provide firm pricing on fertilizer due to shortages.

  • In late February 2026, the war in Iran began.
  • Fertilizer prices have increased by more than 30% since the end of February 2026.
  • Diesel prices in Nebraska are up more than $1 per gallon compared to this time last year.

The players

Bart Jacobson

An executive with Growth Technologies, a fertilizer supplier.

Jason Lewis

A farmer in the Henderson, Nebraska area.

Jane Liu

An economics professor at the University of Nebraska at Omaha.

Mark McHargue

President of the Nebraska Farm Bureau.

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What they’re saying

“If you really looked at things, you'd almost say this is the worst of the worst case scenario of what could happen in the nitrogen business.”

— Bart Jacobson, Growth Technologies executive (1011now.com)

“There's some places where it's pulled. So you can pull fertilizer, but you won't know the cost until they figure it out. So that's kind of scary.”

— Jason Lewis, Farmer (1011now.com)

“It still depends on the intensity and the duration of the conflict. So if the conflict is persistent, if it lasts for a long time, then it will definitely have a bigger, more profound impact on people's lives.”

— Jane Liu, Economics professor, University of Nebraska at Omaha (1011now.com)

“It's not restricting our profits, it's increasing our losses.”

— Mark McHargue, President, Nebraska Farm Bureau (1011now.com)

What’s next

Farmers will continue to monitor the situation and make adjustments to their planting plans and fertilizer application rates as the spring planting season progresses. The judge overseeing the case involving the fertilizer supply disruptions is expected to rule on potential emergency measures to address the crisis in the coming weeks.

The takeaway

The confluence of the war in the Middle East, spiking fertilizer and fuel costs, and supply chain disruptions has created an unprecedented crisis for Nebraska's farmers, threatening their livelihoods and the state's broader agricultural economy. This highlights the vulnerability of the food system to global conflicts and the need for greater resilience and self-sufficiency in critical agricultural inputs.