Survey finds 70% of famers cannot afford enough fertilizer for the year

A new survey found that 70% of American farmers worry they cannot afford to purchase enough fertilizer to make it through the year.

More than 5,700 farmers from every state and Puerto Rico responded to the American Farm Bureau Federation (AFBF) survey, conducted April 3-11.

With rising input costs stemming from the conflict with Iran and ongoing tensions in the Strait of Hormuz, survey analysis revealed that almost eight in 10 farmers in the southern U.S. say they can’t afford all needed supplies this year. Sixty-nine percent said the same in the Northeast, with 66% of growers in the West and 48% in the Midwest also reporting cost concerns.

In the Midwest, 67% of growers prebooked fertilizer purchases in advance of planting season. In the West, 31% did so, while 30% of farmers in the Northeast and 19% in the South prebooked purchases.

Even with higher pre-booking rates, almost one in three Midwestern farmers still report entering the season without securing all of their fertilizer needs, according to the survey.

“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,” according to AFBF’s latest Market Intel report. “Since the escalation of tensions in the Middle East, nitrogen fertilizer prices have risen more than 30%, while combined fuel and fertilizer costs have increased roughly 20% to 40%. Urea prices have increased by 47% since the end of February, marking the largest month-to-month percentage increase in the price of urea.

“These increases are occurring when many producers were already facing tight margins for many consecutive years.” 

Many farmers surveyed said they will forego applying fertilizer this spring in hopes that prices will return to an affordable level later in the growing season.

Rice topped a commodity breakdown list, with 88% of farmers unable to afford required fertilizer, followed by cotton (86%) and peanuts (84%). Sixty-three percent of fruit growers and 61% of vegetable growers said they would not be able to purchase all required fertilizer.

“The skyrocketing cost of fuel and fertilizer is creating more economic hardships for farmers who have already endured years of losses,” AFBF president Zippy Duvall said. “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.”

Ninety-four percent of survey respondents said their financial situation has worsened or remained the same since last year, while only 6% reported improvement.