Tennessee farmer Todd Littleton is facing an additional $100,000 bill for fertiliser this season, a 40 per cent increase from last year, directly due to the war in Iran. The third-generation farmer from Gibson County described the situation as “a really bad time” after several years of record losses.
Littleton, who grows corn, soybeans and wheat, is among thousands of US farmers paying significantly more for nitrogen-based fertiliser, essential for corn used in livestock feed and biofuel. The price surge follows the US and Israeli attack on Iran on 28 February, which disrupted shipping through the Strait of Hormuz, a chokepoint for 20 per cent of global oil and gas.
According to the American Farm Bureau Federation, 15 per cent of US fertiliser imports come from the Middle East, with half the global supply of urea and 30 per cent of ammonia originating there. “When the ports raised nitrogen prices due to the conflict, that directly affects me,” Littleton said.
Zippy Duvall, president of the American Farm Bureau, warned that farmers who have not pre-ordered fertiliser may not obtain it at all. Harry Ott, a South Carolina farmer and state farm bureau leader, said there is insufficient stockpiled fertiliser to meet spring demand, describing the situation as “dire”.
The crisis compounds existing supply issues from the Ukraine-Russia war and China’s cut in phosphate exports. Jacqui Fatka, an economist at CoBank, noted that even if the Iran war ended, prices would not fall quickly due to the time needed to restart shipments and the 30-to-45-day voyage to the US.
Domestic production of nitrogen- and phosphate-based fertilisers helps, but higher energy prices still push costs up, said Anne Villamil of the University of Iowa. Soaring oil prices could also raise food prices due to higher transport and packaging costs, added Chad Hart of Iowa State University.
