A new survey revealed that a majority of U.S. farmworkers say they cannot afford fertilizer due to rising costs caused by the U.S.-Israeli conflict in Iran.
The survey released by the American Farm Bureau Federation (AFBF) on Tuesday shows that 70 percent say fertilizer is too expensive and has left them unable to purchase the fertilizer they need. The AFBF also found that 94 percent of respondents say their financial situation has worsened or remained the same, compared to 6 percent who say their financial situations improved.
“Spring planting decisions depend heavily on access to fertilizer and diesel fuel, both of which have been impacted by geopolitical risks that have disrupted global markets,” the AFBF’s economic analysis team, Market Intel, stated.
Nitrogen fertilizer prices have gone up more than 30 percent since the start of the conflict on Feb. 28, according to Market Intel. Combined fuel and fertilizer costs have also risen between 20 and 40 percent, with urea prices jumping 47 percent since late February.
The AFBF cited the closure of the Strait of Hormuz as the key factor affecting the crop production systems and fertilizer needs. Over one-third of globally traded fertilizer passes through the strait, but the conflict disrupted shipments intended for farmers just ahead of planting in the spring, The Washington Times previously reported.
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Midwestern producers reported the highest fertilizer pre-booking rates at 67 percent. Pre-booking is more common in the Midwest, “where fertilizer needs are typically larger and purchasing decisions are often made well ahead of planting,” AFBF stated.
The West saw the second highest pre-booking rate at 31 percent, followed by the Northeast at 30 percent. The South saw a 19 percent pre-booking rate.
The AFBF evaluated that the fertilizer market is the most volatile since Russia started its military invasion of Ukraine in 2022. Disruption in the Middle East has affected around 49 percent of global urea exports needed for crop production.
“While the United States is the world’s largest producer of oil and natural gas, fuel and fertilizer markets remain globally interconnected,” the AFBF stated.
Agriculture Secretary Brooke Rollins said last month that the conflict will not impact the majority of farm workers. She said on Fox Business Network that 80 percent of farmers already bought fertilizer last year in preparation for the spring season, and that there “should not be much disruption.”
Earlier in March, Rollins said the White House was looking at ways to help farmers, including conversations she had with lawmakers on helping farmers stay funded.
The AFBF survey was conducted April 3-11 and included more than 5,700 respondents.
