Fertilizer Prices Rise As Iran War Hurts U.S. Supplies
Fertilizer costs are rising as the US-Iran war disrupts shipments through the Strait of Hormuz, and farmers are feeling the impact.
Iran has blocked maritime traffic through the Strait of Hormuz, attacking ships in the area. Blocking a critical transportation corridor for fertilizer, oil and other goods to the United States represents a critical issue for American farmers.
“Huge amounts of fertilizers, including urea, ammonia, phosphates and sulfur, pass through the Strait of Hormuz each year, creating a huge bottleneck for agricultural supply chains,” Farm Journal reported.
The American Farm Bureau Federation in a letter dated March 9 asked President Donald Trump to ensure the safe movement of fertilizer shipments to the United States to stabilize costs and delivery before the spring planting season for farmers.
“Fertilizer is a globally traded commodity, and global trade patterns affect the prices paid to US farmers,” the USDA said. “While importing a lot of fertilizer, US agriculture relies heavily on potash imports: the country’s net-import dependency (that is, net sales as a fraction of total consumption) of potash is over 90%, according to the US Geological Survey.”
Here’s what you need to know about the impact of the Iran war on American farmers:
Are Fertilizer Costs High?
Yes, the price of fertilizer has increased significantly due to the disruption of the Strait of Hormuz during the US-Iran war, said the American Farm Bureau Federation.
“Nitrogen fertilizer supply chains are very close to the region, which accounts for about 49% of global urea exports and 30% of global ammonia exports.
Why Are Rising Costs a Concern?
Fertilizer is one of the largest costs involved in agricultural production, according to the USDA. Fertilizer costs account for 21% of the total cost of maize production.
Fertilizers also represent a large part of the cost of producing other field crops, as follows: 19% for wheat, 13% for cotton and 8% for soybeans. In addition to field crops, fertilizers are also important for the production of fruits, vegetables, forest products and pastures (livestock production).
The Michigan Farm Bureau in January said farmers should expect higher costs for 2026-27. The farm group said fertilizer costs have risen by 37% since 2020.
Progressive Farmer reported on March 4 that the cost of anhydrous ammonia is already up 15% from last year. In addition, urea fertilizer increased by 5% from January to February.
Why Are Shipping Blocked in the Strait of Hormuz?
As the US-Iran war continues, Iran’s new supreme leader Mojtaba Khamenei said the Strait of Hormuz will remain closed in his first message to the Iranian people. Iran has attacked ships in critical condition throughout the war, although it was allowed to sail in a selective manner.
What is the Strait of Hormuz?
The Strait of Hormuz is a water corridor between the Persian Gulf and the Gulf of Oman, an important waterway that carries 20% of the world’s oil exports.
The Strait of Hormuz is about 30 miles wide in a very small area, between the Omani Musandam Peninsula and Iran.
Contact Jenna Prestininzi: [email protected].
This article is from the Detroit Free Press: Fertilizer prices rise as Iran war disrupts US supply
Reporting by Jenna Prestininzi, Detroit Free Press / Detroit Free Press
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