Rising Fuel and Fertilizer Costs Threaten Global Agriculture Amid Middle East Conflict

The ongoing conflict in the Middle East, particularly the U.S.-Israeli war with Iran that began in late February 2026, has significantly impacted agricultural input costs, particularly fuel and fertilizers. Farmers across the United States and in countries like the Philippines are facing unprecedented challenges as these costs surge, threatening their profitability and food supply chains.

Soaring diesel, fertilizer costs hit US farmers

Farmers in the U.S. Midwest, a major agricultural hub, are experiencing sharp increases in the prices of diesel and fertilizers. Brian Duncan, a farmer in Illinois, noted that the Strait of Hormuz is crucial for the transit of fuel and fertilizers, and the conflict has created uncertainty in global markets. Many farmers had locked in fertilizer prices last fall, but those who did not are now facing prices that have escalated dramatically. For instance, nitrogen fertilizer prices have reportedly increased by 45 to 50 percent month-on-month, with some farmers paying around $600 per ton compared to $350 just months prior.

Soaring diesel, fertilizer costs hit US farmersPBS News HourStatehouse News Bureau

Robb Ewoldt, a farmer in Iowa, expressed concern over the combination of high input costs and depressed commodity prices, stating, "We have higher costs... and so it's making it very challenging to be profitable." The sentiment among farmers indicates a looming crisis, with some fearing they may not survive another year if costs remain high.

Soaring diesel, fertilizer costs hit US farmers

In the Philippines, the situation is similarly dire. Farmers like Romeo Wagayan are opting to leave their crops unharvested due to soaring costs associated with labor, transportation, and harvesting. The price of diesel has surged by 59.5% year-on-year, making it economically unfeasible for farmers to sell their produce at a loss. Agot Balanoy, an adviser at a vegetable trading hub, noted that many buyers are pulling out, reflecting a shift in consumer behavior as households grapple with inflation and opt for cheaper alternatives.

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The ramifications of these rising costs extend beyond individual farmers. The World Food Program of the U.N. anticipates that high energy prices could increase the number of people experiencing acute food insecurity by up to 45 million, depending on the duration of the conflict. The U.N. Food and Agriculture Organization has reported increases in the prices of major agricultural commodities, indicating that consumers may soon feel the effects of these rising costs.

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Critics argue that the current situation highlights the vulnerabilities in global agricultural supply chains, particularly the reliance on imports for essential inputs like fertilizers. Farmers have expressed frustration over existing tariffs and policies that have exacerbated their financial burdens. The volatility in fuel prices, driven by geopolitical tensions, has left many farmers anxious about their ability to maintain operations.

Soaring diesel, fertilizer costs hit US farmers

As the planting season progresses, farmers are adjusting their strategies, with some considering switching crops or reducing acreage due to high input costs. The situation remains fluid, and upcoming reports from the U.S. Consumer Price Index and the U.N. Food and Agriculture Organization will provide further insights into the economic landscape for farmers and consumers alike.

Spring planting economics tighten as higher fuel and fertilizer costs force farmers to recalculate risk

• "The sentiment is, you know, when I go to meetings, we think, well, there's going to be, some of us aren't going to be here next year because we're not going to be in business." — Robb Ewoldt, Farmer, Iowa

Soaring diesel, fertilizer costs hit US farmers

• "If we harvest it, our losses only increase because of labor, transportation and packing costs." — Romeo Wagayan, Farmer, Philippines

Rappler

• "Things are so difficult right now in the fertilizer industry that some farmers can't even get a price for fertilizer." — Ty Higgins, Ag Net Communications

Statehouse News Bureau

• "We're really feeling the squeeze from these fuel and energy costs." — Samantha Wilkins, Spokesperson, Warwickshire Farming Co-op

Farmers Warn of Rising Fuel Costs

The convergence of rising fuel and fertilizer costs due to geopolitical instability poses a significant threat to global food security, necessitating urgent attention and action from policymakers and agricultural stakeholders.

Soaring diesel, fertilizer costs hit US farmers