Thin spread

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MYRNA BROWN, HOST: Today is Thursday, May 14th. Good morning! This is The World and Everything in It from listener-supported WORLD Radio. 

I’m Myrna Brown.

NICK EICHER, HOST: And I’m Nick Eicher.

Next up, the rising cost of growing food.

Farmers depend on nitrogen fertilizer, which is produced using natural gas. Turmoil in the Middle East is pushing prices sharply higher.

That’s leaving many growers scrambling to adapt before crops go into the ground.

WORLD’s Emma Eicher reports.

EMMA EICHER: Lorenda Overman’s family has been farming the same land in North Carolina for almost 200 years. This spring, their input costs are the highest they’ve ever recorded—the result of conflict in Iran.

Overman spoke in an April 14th virtual meeting on fertilizer pricing and stability with the American Farm Bureau Federation.

LORENDA OVERMAN: So last year, for nitrogen and fertilizer, we spent $139 an acre. This year, it's going to be $217 an acre just for those two products.

These increased costs are tied in part to higher prices of natural gas and supply disruptions.

The Strait of Hormuz is central to fertilizer transport. Iran holds some of the world’s largest natural gas reserves, and the Gulf plays a big role in global fertilizer and energy markets.

Natural gas is a key component in producing fertilizer, and this year, an estimated 70% of American farmers say they cannot afford what they need for spring planting.

Fertilizer prices operate on a global market, so any disruptions will have a ripple effect. Nitrogen fertilizer prices spiked within the first days of conflict in the Gulf.

OVERMAN: When the Strait of Hormuz closed, nitrogen prices went up $100 per ton within that first week.

That translates to a double-digit price increase for the main fertilizers used in the U.S. In one example, urea fertilizer went from around $600 per ton in late 2025, to $865 today.

Faith Parum is a Farm Bureau economist specializing in agriculture.

FAITH PARUM: And we're seeing a bleak picture in the farm economy …

Many large farms pre-book fertilizer in the spring. This year, those that pre-booked locked in a lower price.

Parum says small farms typically don’t buy fertilizer ahead of time, so now, they’re the most vulnerable to the price hikes.

PARUM: So our farmers who didn't pre-book fertilizer are having to pay that higher rate, which means they're not able to afford as much as they would normally purchase.

Canada is a major fertilizer supplier to the U.S., but many other countries rely on the Middle East for natural gas imports, and they’re scrambling for alternatives. 

More demand will continue to drive up global prices, including in the U.S. Farmers are responding by buying less fertilizer, which will mean less crop production.

Overman says her farm is now growing soybeans, which don’t need as much nitrogen. As for the supplies they already have on hand …

OVERMAN: We're also going to spread that fertilizer a little bit thinner. Farming is all about pivoting, and you have to pivot to stay alive.

Tommy Salisbury is a farmer in Oklahoma. He’s seen an even higher price increase there.

TOMMY SALISBURY: We had closer to about $150 a ton increase of urea fertilizer.

He also had to pivot.

SALISBURY: We're going to plant less acres of Milo because we can't afford to try to put that higher input into the ground and make it work out.

The “Milo” he referred to is a grain sorghum. He plans the same strategic move as Overman, swapping the sorghum for a hardier crop.

SALISBURY: … transition to soybeans to try to make up that difference there.

In March, the Farm Bureau Federation asked the Trump Administration for help making fertilizer more available and affordable. On Tuesday, a Senate Committee on Agriculture, Nutrition and Forestry held a hearing to discuss options.

Trent Kubik is the president of the South Dakota Corn Growers Association. He raised concerns about the fertilizer industry’s increased profits...

TRENT KUBIK: Market power has allowed manufacturers to maintain higher prices at the expense of the U.S. farmer.

… and said that leaves farmers struggling to keep up with the cost.

KUBIK: Recent earnings reports indicate record profits for fertilizer companies. When my input price goes up, my profit margin shrinks.

Other discussions have proposed upping domestic production of phosphate and potash fertilizer.

Earlier this month, President Donald Trump reiterated his commitment to ensuring safe passage for ships through the Strait of Hormuz, but control of the Strait continues to be a sticking point in negotiations.

Reporting for WORLD, I’m Emma Eicher.

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