US Farmers Face Collapse Amid Soaring Fertilizer Prices

Farmers in the US are facing severe economic hardship due to soaring fertilizer prices, exacerbated by the onset of the war in Iran. Farmers' incomes have been declining over the past two years due to lower grain prices and higher production costs.

According to a survey by the American Farm Bureau Federation (AFBF), approximately 70% of farmers cannot afford all the fertilizers they need. The increase in fertilizer prices is partly due to the blockade of Gulf ports, which has disrupted trade in oil and liquefied natural gas.

Middle Eastern countries affected by the closure of the Straits account for nearly half of global urea exports. The price of nitrogen fertilizers has increased by more than 30% since the end of February, while the price of urea has seen a 47% increase. At the same time, agricultural diesel has increased by 46%.

Analysts estimate that fertilizer prices will take 1-1½ years to stabilize, while fuel will take six months. Many farmers have exhausted their cash reserves and do not have available capital to pay the higher input costs.

Even before the war, Midwestern soybean farmers were losing market share in China to Brazil due to trade tensions between the US and China.