Farmers see fertilizer prices jump as Iran blocks key shipping route

Fertilizer costs are rising as the U.S.-Iran war disrupts shipments through the Strait of Hormuz, and farmers are feeling the impact.

Iran has blocked maritime traffic through the Strait of Hormuz, attacking ships in the area. The blockage of a critical transportation corridor for fertilizer, oil and other commodities headed to the United ​States represents a significant issue for American farmers.

“Large volumes of fertilizer inputs, including urea, ammonia, phosphates and sulfur, move through the Strait of Hormuz each year, creating a major choke point for agricultural supply chains,” ⁠the Farm Journal reported.

The American Farm Bureau Federation in a March 9 letter has called on President Donald Trump to ensure safe ‌passage of fertilizer shipments to the United States to stabilize costs ​and delivery ahead of spring planting season for farmers.

“Fertilizer is a globally traded commodity, and global trade patterns affect prices paid by U.S. farmers,” the USDA said. “While importing many fertilizer commodities, U.S. agriculture relies especially heavily on imports for potash: the nation’s net-import reliance (i.e., net imports as a share ⁠of total use) for potash is over 90%, according to the U.S. ‌Geological Survey.”

The price of fertilizer has risen sharply due to disruptions to the Strait of Hormuz amid the U.S. ⁠war with Iran, the American Farm Bureau Federation said.

“Nitrogen fertilizer supply chains are closely tied to the region, which accounts for nearly 49% of global urea exports and about 30% of ‌global ammonia exports. Major exporters include Iran, ‌Qatar, Saudi Arabia and Egypt,” the Farm Journal reported.

Fertilizer is typically one of the larger expenses involved in agricultural production, according to the USDA. Fertilizer costs account for 21% ⁠of total corn production costs.

Fertilizer also represents a significant share of the cost of ​producing other field crops, as follows: ⁠19% for ​wheat, 13% for cotton and 8% for soybeans. In addition to field crops, fertilizer is also vital to the production of fruits, vegetables, forest products and pasture (for livestock production).

The Michigan Farm Bureau in January said farmers should expect rising costs for 2026-27. The farm group ⁠said fertilizer costs had already risen by 37% since 2020.

Progressive Farmer reported on March 4 that anhydrous ammonia costs already were up 15% from a year ago. In addition, urea fertilizers were up 5% from January to ⁠February.

As the U.S.-Iran war continues, Iran’s new supreme leader Mojtaba Khamenei said the Strait of Hormuz will continue to be closed in his first message to Iranians. Iran has attacked ships in the critical strait throughout the war, ⁠though selective passage has been allowed.

The Strait of Hormuz is a water corridor between ​the Persian Gulf ‌and the Gulf of Oman, a crucial waterway that carries 20% of the world’s oil shipments.

The Strait ​of Hormuz is approximately 30 miles wide at the narrowest point, between the Omani Musandam Peninsula and Iran.