US Farmers Hit with Worst Crisis in 40 Years as Iran Conflict Drives Up Costs

The US agricultural sector is facing its worst crisis in 40 years due to the ongoing conflict between the US and Iran. The war has disrupted energy markets, causing diesel prices to surge by over $1.64 per gallon since February's attack on Iran. This has severely impacted farmers across the Corn Belt, particularly those who rely heavily on commercial shipping through the Strait of Hormuz.

Farmers are struggling with skyrocketing costs for inputs such as phosphorus-rich fertilizers, which have increased from around $470 per ton a decade ago to over $900 per ton today. The average price of diesel has risen to approximately $5.45 per gallon, up from $3.81 before the conflict began.

The situation is compounded by drought and hot weather conditions that have damaged crops across parts of the Corn Belt. Economists estimate that farmers will lose around $31 billion in 2026 without federal assistance, with losses expected to reach $32 billion next year. This crisis comes ahead of November's midterm elections, which will determine control of Congress.