Rising fertiliser costs add pressure on US farmers

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American farmers are facing renewed financial strain as rising fertiliser costs coincide with low crop prices and ongoing trade uncertainty. The recent conflict involving the United States, Israel and Iran has disrupted maritime traffic in the Strait of Hormuz, a key route for global fertiliser shipments. Analysts estimate that roughly one third of the world’s fertilisers pass through the strait, raising concerns about supply disruptions as the planting season approaches.

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Farmers in several agricultural states have reported sharply increasing costs for key inputs. According to industry data, the price of urea, a widely used nitrogen fertiliser, rose by nearly 30 per cent per short ton within a week following the outbreak of hostilities. The United States imports around 35 per cent of its fertiliser supplies, including phosphorus and nitrogen products from the Middle East, making the sector particularly sensitive to disruptions in international trade routes.

Agricultural organisations have warned that shortages of essential inputs such as ammonia, nitrogen, phosphate and sulphur-based fertilisers could reduce crop production if supplies are not prioritised. Economists note that many farmers delayed purchasing fertilisers this year because of already elevated prices, leaving some producers exposed to the recent surge. As a result, the financial pressure on farmers has intensified, with rising costs also affecting seeds, pesticides and healthcare.

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Industry representatives say the uncertainty surrounding the conflict has heightened concerns about future planting decisions. Fertiliser use is estimated to account for roughly half of agricultural productivity, meaning reduced application could lead to lower yields and reduced income for farmers. Some producers are reportedly considering shifting towards crops such as soybeans, which generally require less fertiliser than crops like maize, in an effort to manage rising costs.

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