By Blake Jackson
American Farm Bureau Federation survey results show farmers are facing stronger cost pressure this spring as fertilizer markets tighten. More than 5,700 farmer responses highlight growing concern over rising input prices during a key time in the crop season.
Supply problems linked to tensions in the Middle East and shipping issues through the Strait of Hormuz are limiting fertilizer movement. This matters because countries in that region supply a large share of global urea and ammonia exports. Reduced supply is pushing prices higher and adding uncertainty for producers.
Since late February, nitrogen fertilizer prices have increased by more than 30%. Urea prices have climbed about 47%, marking one of the sharpest recent monthly gains. Farm diesel prices have also risen about 46%, increasing costs for field work, hauling, and transportation.
Together, fuel and fertilizer expenses are estimated to be 20 to 40% higher depending on farm size and crop mix. For farms already dealing with tight margins, these fast cost increases create serious financial pressure.
Not all fertilizer products move the same way. Anhydrous ammonia has shown the strongest price swings because nitrogen products depend heavily on natural gas for production. Phosphate and potash products have also risen, but with less volatility.
Regional differences are also important. In the Midwest, many growers bought fertilizer early, with about 67% pre-booking supplies before recent price jumps. In the South, only 19% reported early purchases, leaving more farms exposed to higher prices. Smaller farms also report lower pre-booking rates than larger operations.
The survey shows difficult financial conditions across agriculture. Ninety-four percent of respondents say their financial position is worse or unchanged from last year. About 70% say they cannot afford all the fertilizer needed this season.
Lower fertilizer use may reduce crop yields and total production. Farmers are encouraged to track costs, stay in contact with lenders, and follow market updates closely. Future USDA reports may provide early signs of how rising costs affect planting decisions for the 2026 crop year.
Photo Credit: istock-alenamozhjer
Categories: Kentucky, Crops, Energy