How a Fertilizer Shortage Caused by the Iran War Could Affect U.S. Food Prices
When the war with Iran started, one of the top economic concerns globally was the slowdown of oil shipments. But there was another critical export that got stuck in the region when hostilities began: fertilizer.
Around one-third of the world’s fertilizer transported by sea passes through the Strait of Hormuz. The waterway has become a shipping chokepoint in recent months.
The closure of the strait has led to a slump in fertilizer shipments from the Persian Gulf and price increases, affecting countries that import fertilizer.
U.S. farmers have been hit with higher fertilizer prices and limited availability just as they were planning their upcoming growing season.
Food system experts believe the impact of the fertilizer shortage on retail food prices will be minimal.
U.S. Farmers Rethinking Plans
About one-third of the fertilizer used by U.S. farmers is imported. Little of that comes through the Strait of Hormuz, but the global fertilizer market has been affected.
A survey released by the American Farm Bureau Federation in April showed that 70% of respondents couldn’t afford all the fertilizer they needed this season.
Some farmers are adjusting their planting plans to cope with the higher costs and limited availability of fertilizer.
