Spring planting depends heavily on access to fertilizer and diesel fuel. A nationwide survey from the American Farm Bureau Federation shows most farmers cannot afford enough of either.
The survey included over 5,700 farmers representing all 50 states and Puerto Rico. All respondents were asked about fertilizer affordability ahead of the current growing season. The results show a deep divide by region.
In the southern United States, almost 8 in 10 farmers said they cannot afford all the fertilizer supplies they need. In the Northeast, the share was 69%. In the West, it was 66%. The Midwest fared better, with 48% saying the same thing.
Farmers can pre-book fertilizer before planting season. That means ordering and paying for it in advance to lock in a price. In the South, only 19% of farmers pre-booked.
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In the Northeast, 30% did. In the West, 31% pre-booked. In the Midwest, 67% pre-booked.
Even with that high rate, roughly 32% of Midwestern farmers began the season without enough fertilizer.
Global supplies of crude oil and crucial fertilizer materials have been disrupted by Middle East tensions, including the shutting down of the Strait of Hormuz. That has driven prices sharply higher. Nitrogen fertilizer prices jumped by more than 30% since tensions escalated. Combined fuel and fertilizer costs rose roughly 20% to 40%.
Urea, a common nitrogen fertilizer, saw the biggest single spike. Its price increased 47% from the end of February to the end of March. That was the largest month-over-month percentage increase on record.
The American Farm Bureau Federation's analysis publication, Market Intel, explained the situation. "Spring planting decisions depend heavily on access to fertilizer and diesel fuel, both of which have been impacted by geopolitical risks that have disrupted global markets."
AFBF President Zippy Duvall added a warning. "The skyrocketing cost of fuel and fertilizer is creating more economic hardships for farmers who have already endured years of losses. Without the necessary fertilizers, we'll face lower yields and some farmers will reduce acres altogether, which will impact food and feed supplies. It's too early to know how this will affect food availability and prices in the long run, but it's a warning light that we've shared with leaders in Washington. We look forward to working with them to find solutions so farmers can continue to feed families across America."
Many farmers surveyed plan to skip applying fertilizer this spring. They hope prices will drop later in the season. The AFBF warns that could lead to lower crop yields and reduced planted acreage. Eventually, that may affect food and feed supplies.
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