Farmers Facing Increased Costs Because of Iran War

New York Public News Network | By Cara Chapman

Farmers are feeling the effects of increased fuel and fertilizer prices due to the Iran war.

A survey conducted by the American Farm Bureau Federation in early April found that almost 70% of farmers in the Northeast can’t afford to buy all the fertilizer they need.

“It’s not a rosy outlook for anybody, really,” said New York Farm Bureau President David Fisher.

Fisher said farmers were already dealing with multiple challenges this year: lower milk prices, high labor costs, burdensome regulations, tariffs.

Then at the end of February, the U.S. and Israel attacked Iran. That led to the restriction of movement through the Strait of Hormuz, a major artery for global trade, and that’s driven up combined fuel and fertilizer costs by 20% to 40%, according to AFBF Market Intel.

Fisher and his family own a large dairy farm in the St. Lawrence County town of Madrid. He said farmers in the midst of spring planting have to weigh the risk of yield loss depending on how much they do — or don’t — decide to fertilize, and that dealers don’t know if they’ll be able to get all the fertilizer farmers will need, which could be a problem in the Northeast.

“From a nitrogen standpoint, we are probably one of the later growing seasons,” Fisher explained, “so if it runs short at the end of the season, we could be more in jeopardy than other places across the country or in the world.”

Fisher said another big concern is the multiplier effect of increased prices.

“Delivery charges — whether it be from the Port of Montreal or the Port of Albany — on any feed/fertilizer ingredients, there are gonna be surcharges,” he said. “So it’s not just the increased cost of that product, it’s the increased cost along with freight and other things that impact all the things along the way.”

On whether he’s heard from any farmers who voted for President Donald Trump and are now frustrated with the challenges facing their farms, Fisher said he tries to stay out of political discussions.

Still, he said that unpredictable events over the last several years, like the COVID pandemic and now the conflict in the Middle East, are stressful for everyone.

Fisher added that since the United States is a net importer of food, Americans need to be aware of the impacts these events have on the food system.

“Food security is national security,” he said, “and as we saw during COVID, if the boat doesn’t show up, you don’t get it, and if it’s food that you depend on, that’s a concern. And as more farms go out of business and things change, it’s very concerning from a national security standpoint.”

Fisher said he doesn’t know how long it would take for fuel and fertilizer costs to return to an affordable level once traffic through the strait goes back to normal. He said, typically, prices go up more quickly than they come down.

Image: Farm workers harvest summer squash at C&M Farms in Valatie, N.Y., July 5, 2013. (AP Photo/Mike Groll, File)