Iran War Triggers US Farmers' Worst Financial Crisis in Four Decades

US farmers are facing their worst financial crisis in four decades due to soaring diesel and fertilizer costs caused by the war with Iran. The conflict has disrupted energy markets, leading to a sharp increase in energy prices. According to the US Energy Information Administration, the nationwide average diesel price has climbed to $5.45 per gallon from $3.81 before the war.

Farmers across the Corn Belt have been particularly hard hit by these rising costs. Nebraska corn and soybean farmer Matt Bailey told the FT that a phosphorus-rich fertilizer used at planting now costs more than $900 per ton, compared to about $470 a decade ago.

The Iran war has also led to uncertainty for farmers, with projected losses of $31 billion this year and $32 billion next year. Corn producers are expected to lose $131 per acre this year and $167 in 2027, while soybean losses are forecast at $80 and $138 respectively.