Overview
- The Iran conflict forced the Strait of Hormuz to close to U.S.-aligned shipping, cutting off key oil and fertilizer routes and jolting farm input markets.
- Diesel now averages $5.67 a gallon, up 60% from a year ago, and industry surveys say about 70% of farmers cannot afford needed fertilizer.
- Financial strain is mounting, with 86 Chapter 12 farm bankruptcies in the first quarter and lenders growing more wary of making operating loans.
- Many growers are changing plans, moving roughly 4 million acres from corn to soybeans and trimming output, a shift that could keep food prices elevated into 2027.
- Federal help has started to flow, including $9.7 billion in bridge payments and a new plan with $900 million for independent fertilizer firms, but reporting describes relief as limited against ongoing high costs.