US farmers strained as fertilizer costs surge on war

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WASHINGTON DC: American farmers are facing a severe financial squeeze as the ongoing conflict in the Middle East drives fertilizer and energy prices to near-record highs. The closure of the Strait of Hormuz, a critical global artery for both energy and agricultural nutrients, has disrupted roughly one-third of the global fertilizer trade just as the U.S. spring planting season begins.

Benchmark nitrogen prices have nearly doubled since the onset of the conflict, jumping from approximately $350 per ton in late December to over $600 by mid-March. Industry experts note that while some farmers pre-purchased supplies, a significant percentage remain exposed to spot-market volatility. The cost spike is particularly damaging for corn producers, as nitrogen is the most vital and expensive input for the crop.

In response, the U.S. Justice Department has opened an antitrust probe into major fertilizer producers to investigate potential price-fixing and collusion. Meanwhile, the administration has authorized the import of Venezuelan fertilizer to bolster domestic supplies. Despite these measures, many growers are considering shifting acreage from corn to soybeans to reduce their dependency on high-cost nitrogen.

Photo Credits: AFP