American farmers struggle with higher prices from – Business News
American farmers, already dealt stiff blows from tariff prices, are struggling to outlive because the warfare in Iran sends fertilizer, feed and vitality prices sky-high – threatening to push grocery prices even higher.
Iran’s blockade of the Strait of Hormuz has massively disrupted world oil provides – however the very important maritime route can be accountable for transporting roughly a third of the world’s fertilizer, based on UN Trade and Development, the United Nations physique that offers with worldwide commerce.
The price of nitrogen, the principle element of artificial fertilizers, is up 23.6% over the previous yr, based on February’s Producer Price Index, probably the most not too long ago accessible authorities knowledge.
American farmers are struggling to outlive because the warfare in Iran sends fertilizer, feed and vitality prices sky-high. Denver Post through Getty Images
“Farmers have been underwater,” Harriet Behar, a lifelong farmer based mostly in Wisconsin and member of the Organic Farmers Association, advised The Post on Wednesday.
Between the warfare and President Trump’s tariffs, farmers are going through a “double whammy,” she added.
Canceled soybean orders from China after Trump slapped the nation with steep tariffs have pressured farmers to put off staff or shut down their companies altogether, whereas different import taxes have made machinery and fertilizer more costly.
“The cost of producing the crops is higher than the return,” Behar stated. “What we’re really seeing out here in farm country is a lot of farmers are saying, ‘I don’t even know if I’m gonna plant a crop this year … and if this continues, I’m done.’”
Americans might quickly see higher prices on shorter-season crops that depend on artificial fertilizer – principally produce like lettuce and tomatoes, based on Behar.
President Trump signed an govt order earlier this yr to quadruple beef imports from Argentina. AP
She stated corn, which wants nitrogen-based fertilizer to grow effectively, may even be hit exhausting – and since corn-based feed is used to nourish livestock, customers might see prices for beef and veal climb even higher on the grocery store.
Prices for beef and veal at shops are already 14.4% higher than final yr, based on February’s Consumer Price Index, as droughts and higher manufacturing prices have shrunk the US cattle herd population to its lowest degree since World War II.
“After years of low profitability, many producers downsized or left the business, and we’re not seeing a meaningful rebuild of the herd,” Will Harris, a fourth-generation cattle rancher and proprietor of White Oak Pastures in Georgia, advised The Post.
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Earlier this yr, Trump signed an govt order to quadruple beef imports from Argentina in an effort to decrease prices – a transfer the National Cattlemen’s Beef Association stated would additional harm the “livelihoods of American cattlemen and women.”
Meanwhile, recent vitality provide shocks from the warfare in Iran couldn’t be coming at a worse time for US farmers — who’re at the moment making ready for the essential spring planting season, which may begin as early as March, based on Behar and Harris.
“This is the exact time of year when row crop farmers are preparing their land and putting down fertilizer and other materials, and both of those processes depend heavily on diesel and natural gas,” Harris stated. “There’s really no part of the food system that is not touched by energy costs.”
Diesel is needed to energy tractors and different farm tools. UCG/Universal Images Group through Getty Images
Some farmers are already dashing to modify over to natural fertilizers like manure, although that’s artificially pushing up prices, based on Behar – however there are no alternate options to diesel, which is needed to energy tractors and different farm tools.
Iran’s efficient closure of the strait despatched national average diesel prices hovering to $5.37 a gallon as of Wednesday – a more than 43% leap over the previous month, based on AAA.
Higher diesel prices might spike prices for all types of shopper items, together with attire, food and furnishings, since most of this stuff are transported on heavy vans that run on the pricier fuel.
Analysts have additionally warned of an “Armageddon” disruption within the provide of liquefied natural fuel, or LNG, which is used for electrical energy, heating and cooking, after strikes on Qatar’s huge Las Raffan plant.
Farm bankruptcies grew final yr for the second yr in a row. Denver Post through Getty Images
Most of the fertilizer used on US farms is made in North America – however LNG is required for the manufacturing course of, so American-made fertilizer will grow more costly if shortages final.
Behar in contrast present financial situations to the farm disaster of the Eighties, when many farmers had been unable to switch tools or make their land funds – resulting in swaths of chapter filings and foreclosures.
In 2025, farm bankruptcies grew for the second yr in a row – hovering 46% from the earlier yr, based on the American Farm Bureau Federation.
The average age of American farmers has continued to rise, hitting 58.1 in 2022 – up more than half a yr from 2017, based on the 2022 Census of Agriculture.
“People, if they’re that close to retirement, they might just say, ‘I’m just gonna quit now,’” Behar advised The Post.
“Everybody’s hanging on as long as they can but it seems like every time the farmers turn around, there’s something else.”
The US Department of Agriculture authorised up to $11 billion in farmer help to counter added tariff prices – however that aid was short-lived, as funds began on Feb. 28, the identical day the US and Israel launched strikes on Iran. It is unclear how a lot assist has been despatched to farmers to date.
The Trump administration has stated it’s in search of different sources of fertilizer to keep provide regular amid the warfare in Iran, together with probably from Venezuela.
