BISMARCK, N.D. (AP) — A Tennessee farmer anticipates spending an additional $100,000 on fertilizer this growing season, representing a 40% increase over last year’s expenses due to the ongoing conflict in Iran — and he’s struggling to find ways to cover the unexpected costs.
“The problem is, is we’re so strained financially coming into this issue,” said Todd Littleton, whose family has farmed in Gibson County in Tennessee’s northwest region for three generations. “We have had a couple of record losses the last couple years, so everyone’s kinda grabbing at straws anyway, and then to have input prices increase yet again, it just really couldn’t happen at a worse time.”
Littleton, who cultivates corn, soybeans and wheat, represents thousands of agricultural producers nationwide facing unexpectedly high fertilizer expenses this spring for nutrients crucial to their harvests. Nitrogen fertilizer proves particularly critical for corn production, typically America’s most extensive crop that supports livestock feed and ethanol fuel production for vehicles.
Agricultural producers have voiced concerns about expensive fertilizer for years, but costs have climbed dramatically since U.S. and Israeli forces struck Iran on February 28, creating shipping delays through the Strait of Hormuz, which handles 20% of global oil and natural gas transport. Beyond driving up fuel costs essential for fertilizer manufacturing, the shipping interruption has essentially halted nitrogen fertilizer exports from Persian Gulf producers and restricted access to vital fertilizer components.
Approximately 15% of American fertilizer imports originate from Middle Eastern countries, with roughly half of the world’s urea supply and 30% of ammonia coming from that region, according to American Farm Bureau Federation data.
“When the ports started raising their nitrogen prices due to the conflict due to shipping concerns, that directly affects me here on the farm,” Littleton said.
These additional expenses prove difficult to manage following multiple challenging years when commodity prices declined while operational costs continued rising, Littleton explained.
The situation could deteriorate further, as some producers may find fertilizer completely unavailable regardless of price, according to Zippy Duvall, who leads the American Farm Bureau Federation.
“We’re being told that many of our farmers that haven’t preordered their fertilizer and paid for it may not even obtain the fertilizer that they’re going to need during the season or for spring planting,” Duvall said. “That’s why this situation is so serious.”
Harry Ott, who grows cotton, corn and peanuts while heading South Carolina’s farm bureau, indicated insufficient fertilizer reserves exist in storage facilities to satisfy upcoming demand.
“It is a really dire situation that our farmers facing,” Ott said.
Prior to these recent price jumps, multiple factors over recent years had already elevated fertilizer costs, beginning with the Ukraine-Russia conflict that restricted raw material access and increased natural gas prices. China also reduced phosphate exports while prioritizing domestic requirements.
Current circumstances have intensified existing supply challenges, meaning fertilizer prices likely won’t drop quickly even if the Iran conflict ends, according to Jacqui Fatka, who analyzes farm supply economics for lender CoBank.
“There’s going to be a tail to this to get everything turned back on, sent back out,” Fatka said.
Transportation time from Middle Eastern suppliers to American markets typically requires 30 to 45 days to reach New Orleans ports.
Some fertilizer already stored domestically can help address shortages from reduced Middle Eastern imports, but those supplies will eventually be exhausted.
“We don’t quite know how it’s going to shake out,” said Nancy Martinez, who oversees public policy, trade and biotechnology for the National Corn Growers Association.
Domestic production of nitrogen and phosphate fertilizers provides some relief, noted Anne Villamil, an economics professor at the University of Iowa.
“But again, energy prices are an input, and so even if you’re producing it in the U.S., if the cost of your inputs goes up, then it’s going to be an increase in price to the farmers who want to buy it,” Villamil said.
Rising oil costs could translate to higher grocery prices through increased diesel expenses for product transportation and petroleum-based packaging materials, explained Chad Hart, an economics professor at Iowa State University.
Nevertheless, elevated fertilizer prices shouldn’t substantially impact supermarket costs despite reducing farmer profits, since production expenses represent only a small portion of consumer grocery bills.
The Trump administration announced measures to address fertilizer costs, including efforts to boost fertilizer imports from Venezuela, which U.S. Agriculture Secretary Brooke Rollins described as “a huge step that puts farm security and farmers first.”
The Agriculture Department also highlighted previously announced $12 billion in one-time payments helping farmers offset losses primarily from Trump administration tariffs. USDA statements indicate over $30 billion in additional farmer assistance since January 2025, while supporting increased fertilizer marketplace competition to reduce prices.
CoBank’s Fatka noted the $12 billion provides limited help for farmers receiving $44 per corn acre when USDA estimates approximately $900 per acre production costs for typical American producers.
Farm bankruptcies remain uncommon, with only 315 cases last year among nearly 1.9 million national farms. Prices for America’s two primary crops — corn and soybeans — have shown recent improvement.
Tom Waters, who manages about 5,000 acres of corn, soybeans and wheat near Kansas City, said rising fertilizer and other costs make profitability challenging when crop prices stay low.
“The margins get smaller and smaller so we just have to really work hard to trim our costs and be as frugal as we can be but still provide the soil and crop what it needs to grow and produce,” Waters said.
