Iran War Puts Squeeze on US Corn Belt Farmers as Diesel Prices Hit Record High

U.S. Corn Belt farmers are facing their deepest financial squeeze in decades due to rising input costs and drought stress, according to farm groups.

The Iran war has driven up diesel prices to $5.45 per gallon from $3.81 before the conflict began, while fertilizer prices have surged to over $900 per ton for 11-52-0, a key planting fertilizer.

Farmers growing nine principal crops face projected losses of $31 billion in 2024 and $32 billion in 2027, with corn losses at $131 per acre this year, according to the American Farm Bureau Federation.

The administration's proposed $11 billion aid package does not fully offset the damage, and many producers argue that earlier trade policies have added to years of weak prices and falling incomes.