(José Niño, Headline USA) Seven out of every ten American farmers say fertilizer has become so expensive that they cannot purchase enough to meet their needs this year, according to a nationwide survey conducted by the American Farm Bureau Federation.
The survey gathered responses from more than 5,700 farmers across all 50 states and Puerto Rico between April 3 and April 11. Farm Bureau economists analyzed the findings in the latest Market Intel report, which paints a grim picture of the agricultural economy.
Southern farmers face the worst conditions. Nearly eight in ten respondents from that region say they cannot afford all the supplies they need this year. The Northeast and West follow at 69 percent and 66 percent respectively. Midwestern farmers fared better at 48 percent, though that still represents nearly half of producers in the nation’s agricultural heartland.
Pre-planning varied dramatically by region. Only 19 percent of southern farmers pre-booked fertilizer before planting season. The Northeast came in at 30 percent and the West at 31 percent. The Midwest led with 67 percent, yet even there almost one in three farmers entered the season without securing their full fertilizer requirements.
The Middle East conflict has driven these prices through the roof. The closure of the Strait of Hormuz has blocked critical fertilizer supplies and crude oil from reaching global markets, creating shortages that have rippled across the world.
“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 Market Intel states. “Since the escalation of tensions in the Middle East, nitrogen fertilizer prices have risen more than 30%, while combined fuel and fertilizer costs have increased roughly 20% to 40%. Urea prices have increased by 47% since the end of February, marking the largest month-to-month percentage increase in the price of urea. These increases are occurring when many producers were already facing tight margins for many consecutive years.”
Many farmers who responded to the survey indicated they will skip fertilizer applications this spring in hopes that prices will decline later in the growing season. That gamble could backfire if supplies remain constrained.
AFBF President Zippy Duvall warned of serious consequences ahead. “The skyrocketing cost of fuel and fertilizer is creating more economic hardships for farmers who have already endured years of losses,” Duvall said. “Without the necessary fertilizers, we’ll face lower yields and some farmers will reduce acres altogether, which will impact food and feed supplies. It’s too early to know how this will affect food availability and prices in the long run, but it’s a warning light that we’ve shared with leaders in Washington. We look forward to working with them to find solutions so farmers can continue to feed families across America.”
The financial strain extends well beyond fertilizer costs. A staggering 94 percent of surveyed farmers reported that their financial situation has worsened or remained stagnant compared to last year. Only 6 percent said their circumstances had improved.
José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
