American homes and businesses are feeling the ripple effects of the war in Iran as energy and input costs climb, squeezing U.S. farmers heading into spring planting.
Rising fuel costs
Diesel prices have surged since the conflict began, with diesel up roughly 45% and retail diesel rising nearly $2 since the war started, according to reporting from Iowa. Gasoline nationwide averaged about $3.97 a gallon at the time of reporting, roughly $1 higher than a month earlier and marking the largest four‑week increase in decades. Higher oil and gas prices have also weighed on major stock indices.
Fertilizer shortages and price spikes
Supply disruptions have pushed key fertilizer ingredients sharply higher: ammonia and urea have seen major price jumps — roughly 20% and 50% increases reported — contributing to scarcity and higher input costs for growers. Farmers who rely on timely fertilizer application for spring planting say shortages and elevated prices are forcing difficult choices.
Impact on farmers and planting
Farmers told reporters the timing could not be worse. Many are already carrying added costs from recent years: some producers reported overall cost increases of about 25% since the previous year. Farm bankruptcies had risen for a second consecutive year, and officials noted bankruptcies were up about 46% since 2024, intensifying concerns about the financial viability of smaller operations. Farmers worry that prolonged high diesel and fertilizer prices will reduce margins, erode farm family incomes and discourage the next generation from staying in farming.
Downstream effects for consumers
Higher diesel and fertilizer costs translate into increased expenses at multiple stages of food production — from planting and harvesting to processing and transportation — which experts say could push consumer prices higher at the grocery store. Analysts warn that the situation affects both producers and eaters, and that prolonged disruptions would have “significant ramifications” across the food supply chain.
Outlook
Producers say they hope for a quick resolution or relief in fuel and input markets before more planting decisions are finalized. Without easing prices or restored supplies, farmers could face tighter margins, delayed planting, and longer‑term consequences for farm operations and rural communities.
