Iran War Sparks Worst US Farm Crisis Since 1980

A severe financial squeeze is gripping America's agricultural heartland as the war with Iran drives up costs for diesel, fertilizer, and other essential farm inputs.

The ongoing conflict has pushed US grain producers toward their worst crisis since the 1980s, according to industry representatives. The disruption of global energy markets following the US-Israeli military campaign against Iran in February has had far-reaching consequences for American farmers.

Agriculture is heavily dependent on fuel, fertilizer, and transportation, meaning that higher energy prices quickly translate into higher production costs for farmers. The Corn Belt has been among the hardest-hit regions, with Nebraska, Iowa, Illinois, and other major agricultural states relying heavily on diesel-powered machinery and fertilizer-intensive production.

The sharp increase in fertilizer prices is a significant concern for farmers. Matt Bailey, a Nebraska farmer who grows corn and soybeans, said that a phosphorus-rich fertilizer used during planting now costs more than $900 per ton, compared with approximately $470 a decade ago.