Fertilizer Supply Problems Put Farmers in a Tough Spot

Spring planting season has arrived (or is just around the corner) for farmers across the country, who are confronting growing uncertainty around one of their most essential crop inputs: fertilizer. Recent disruptions to global fertilizer markets and major shipping routes are raising concerns. It’s yet another stressor on farmers who are already being squeezed as input costs remain historically high while prices for many commodities have fallen significantly.

Large volumes of urea, ammonia, phosphates, sulfur and petroleum produced in Gulf countries move through the Strait of Hormuz, the narrow waterway that provides the only sea passage from the Persian Gulf to the open ocean. Analysis by American Farm Bureau economists reveals that countries exposed to disruption in the region account for nearly half of all global urea exports and about 30% of global ammonia exports, reflecting the concentration of fertilizer production and export capacity in and near the Persian Gulf.

Simply put, the situation is serious.

Harry Ott, president of South Carolina Farm Bureau and a cotton, corn and soybean farmer, recently shared an alarming experience. When he contacted a fertilizer supplier to place an order, he was initially told pricing information for the in-stock product he needed was not available, as the supplier was waiting to see “how high” wholesale prices for future deliveries would go. We understand suppliers are going to experience higher costs, too, but the hope of every farmer in the country is that suppliers don’t take advantage of the situation to unnecessarily inflate prices.

Unless the delivery of critical farm inputs such as urea, ammonia, nitrogen, phosphate and sulfur-based products is strategically prioritized, the U.S. risks a shortfall in crops. Not only is this a threat to our food security – and by extension our national security – such a production shock could contribute to inflationary pressures across the U.S. economy.

Recommendations

That is why Farm Bureau recently shared recommendations with President Trump to lessen the impact of the expected fertilizer shortage on American agriculture. We’re pleased that one recommendation – improving domestic transportation capacity between U.S. ports through a waiver of the Jones Act – has already been implemented. Other key recommendations include:

• Utilizing the U.S. Navy to provide safe transit for fertilizer shipments through the Strait of Hormuz;

• Using federal tools, including those offered by the U.S. International Development Finance Corporation, to help overcome insurance and financing hurdles for vessels carrying fertilizer;

• Partnering with countries around the world to maintain open shipping lanes to reduce the risk of delays and supply disruptions; and

• Ensuring that domestic port, rail and barge capacity is available to deliver fertilizer inputs to rural America promptly and when farmers need them most.

Time for Action

American agriculture depends on a stable and affordable supply of fertilizer to remain productive

and competitive. Swift action is needed to prevent shockwaves in fertilizer supply chains, which in turn will help avoid additional financial strain on farmers, ensuring they have the needed supplies to feed families across America. Failure to act today could lead to disruptions to the food supply chain not seen since 2022 when consumers faced food price inflation that reached a 40-year high.

Cyndie Shearing is a director of communications at the American Farm Bureau Federation.