U.S. farmers are sounding an alarm as key input costs such as fuel and fertilizer skyrocket due to the Iran war.
New survey data from the American Farm Bureau Federation shows fertilizer access and affordability are becoming a major challenge to this year's spring planting season.
A total of 58% of farmers report worsening financial conditions amid rising fertilizer and fuel costs, according to a survey conducted at the beginning of April.
A major share of farmers say they cannot afford all the fertilizer they need this year as prices spike. In the U.S. Midwest, nearly half (48%) of farmers said they cannot afford fertilizer.
That share of farmers rises to 66% in the Western, Northeast and Southern regions of America.
Fertilizer prices have surged due to shipping disruptions from the war in the Middle East, and the higher costs are impacting U.S. agriculture just as spring planting gets underway.
Farmers are being forced to scale back inputs, shift crops, and reconsider how much to plant, which could affect the supply of certain crops in the U.S. and around the world.
At the same time, fuel costs have also been driven higher by the Iran war, with crude oil trading right around $100 U.S. per barrel.
It has resulted in a perfect storm for American farmers who are bracing for a less profitable growing season this year.
The American Farm Bureau Federation, an advocacy group, says that it plans to meet with the White House to push for more aid for farmers in the coming months.
Major U.S. agriculture companies such as Archer-Daniels-Midland (NYSE: $ADM) and Mosaic (NYSE: $MOS) have warned that the current situation could have a material impact on their financial results.