Corn Farmers Face Double Squeeze from Fertilizer Costs and Low Grain Prices

Corn farmers are facing a perfect storm of rising fertilizer costs and stagnant grain prices as they head into spring planting. According to a new survey by the National Corn Growers Association, nearly 90% of farmers report higher local retail prices for nitrogen fertilizer since the Middle East conflict began, with similar increases for phosphate.

The affordability crisis is stark, farmers now need 185 bushels of corn to purchase 1 ton of urea, a record high that reflects the double squeeze of rising input costs and corn prices well below recent peaks. Availability concerns are mounting, with 40% of surveyed farmers yet to fully secure their nitrogen needs for the 2026 crop, and a quarter expressing genuine concerns about product availability.

The situation is expected to worsen in 2027, with nearly two farmers out of every one concerned about this year's fertilizer prices being even more worried about next year's costs. The problem is compounded by domestic trade policy, including countervailing duties on phosphate imports from Morocco that have driven prices higher and halted shipments from a major supplier.

NCGA President Jed Bower noted that 'fertilizer prices were high before the war in Iran began,' but the closure of the Strait of Hormuz has made things worse for farmers looking ahead to 2027.