Rising Energy Costs Squeeze Ohio Farmers Ahead of Planting Season

OSU economists warn that fertilizer prices tied to global energy markets will impact crop decisions and profitability

Apr. 8, 2026 at 3:07pm

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Economists at the Ohio State University College of Food, Agricultural and Environmental Sciences (CFAES) are forecasting significant impacts to Ohio farmers as they grapple with rising energy costs ahead of the spring planting season. One of the main drivers is the sensitivity of fertilizer markets to energy prices, with natural gas being a key component of nitrogen-based fertilizers. As global energy prices have risen, so too have fertilizer prices, squeezing farmer profitability.

Why it matters

Ohio is a major agricultural state, with farmers playing a crucial role in the state's economy. The rising cost of key inputs like fertilizer could force farmers to make difficult decisions about which crops to plant, potentially impacting food supply and prices for consumers. This issue also highlights the vulnerability of the U.S. agricultural system to global energy market fluctuations.

The details

According to CFAES, 72% of global nitrogen fertilizer and urea production is concentrated in just three regions: East Asia, South Asia, and West Asia. While the U.S. does produce some fertilizer domestically, imports are still crucial to the supply chain, making it reliant on global energy prices. CFAES reports that wholesale fertilizer prices at the Gulf have risen from $500 per ton to $650 per ton in early March 2026. Crops like corn and wheat require higher nitrogen fertilizer applications, so the price hikes will impact those farmers more significantly than soybean growers, who use less nitrogen.

  • In early March 2026, wholesale fertilizer prices at the Gulf rose from $500 per ton to $650 per ton.

The players

Ohio State University College of Food, Agricultural and Environmental Sciences (CFAES)

The college that conducted the research and analysis on the impacts of rising energy costs on Ohio farmers.

Ian Sheldon

A professor and holder of The Andersons Endowed Chair in Agricultural Marketing, Trade and Policy in AEDE at Ohio State University.

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What they’re saying

“Focusing on nitrogen fertilizers and urea in particular, 72% of production is accounted for by three regions: East Asia, South Asia and West Asia.”

— Ian Sheldon, Professor and holder of The Andersons Endowed Chair in Agricultural Marketing, Trade and Policy

What’s next

CFAES economists say they will continue to monitor the situation and provide guidance to Ohio farmers as they make planting decisions for the upcoming season.

The takeaway

The rising cost of fertilizer, driven by global energy market volatility, is putting significant financial pressure on Ohio's farmers. This issue highlights the vulnerability of the U.S. agricultural system to external economic forces and the need for policies that support farmers in weathering such challenges.