The U.S. Department of Agriculture already has obligated more than $6 billion in payments under its new Farmer Bridge Assistance program just days after enrollment opened.
Farm Bureau Calls on Trump to Protect Fertilizer Supplies
Politico’s Grace Yarrow reported that “the American Farm Bureau Federation is calling on President Donald Trump to dampen the Iran war’s shocks to the market for critical agricultural supplies — which are landing as farmers confront major economic headwinds.”
“Military action in the Middle East has disrupted fertilizer shipments and energy markets just ahead of American farmers’ spring planting season, the farm bureau’s president, Zippy Duvall, warned in a letter to Trump on Monday,” Yarrow reported. “‘It really is a national security issue,’ Duvall told reporters. ‘Our farmers across the country are heading into spring planting, and they’re facing one of the toughest economic environments that we’ve seen in decades.'”
“The farm bureau represents nearly 6 million families and is a key Trump ally in the agriculture industry,” Yarrow reported. “But the group warned that the Trump administration risks provoking even more financial uncertainty for farmers if it fails to prioritize the delivery of key products.”
Progressive Farmer’s Chris Clayton reported that “AFBF on Monday called on President Donald Trump to protect fertilizer shipments through the Strait of Hormuz and suspend countervailing duties on imported fertilizer.”
“Duvall warned the war could lead to food-inflation spikes comparable to those seen in 2022. Acting quickly to avoid disruptions in fertilizer supplies will help prevent farmers from facing additional financial strain, he explained,” according to Clayton’s reporting. “‘We are deeply concerned that failure to act could lead to disruptions to the food supply chain not seen since 2022 when food price inflation reached 40-year highs,’ Duvall wrote in the letter to Trump.”
“Farm Bureau’s letter recommended Trump take multiple actions to protect the fertilizer supply chain and reduce market disruptions: Direct the U.S. Navy to protect shipping lanes not only for oil, but also for fertilizer through the Strait of Hormuz. Work internationally to maintain open shipping lanes to reduce supply chain disruptions. Leverage programs through the U.S. International Development Finance Corp. to offer insurance or address other financial barriers for ships carrying fertilizer,” Clayton reported.
“Ensure U.S. port, rail and barge capacity is available to quickly ship fertilizer to rural America, including granting a waiver of the Jones Act to help improve domestic shipping between ports. Add sulfur, sulfuric acid, phosphoric acid, anhydrous ammonia, aqua ammonia and calcium nitrate to exemption lists for tariffs, duties or other trade restrictions,” Clayton reported. “Use presidential authority to temporarily suspend countervailing duties on imported fertilizer products ‘to moderate price increases.’ The U.S. still has countervailing duties on phosphorus products from Morocco and Russia that the Commerce Department is expected to begin reviewing this month.”
Fertilizer Prices Continue to Rise
Bloomberg’s Michael Hirtzer, Ben Westcott, Agnieszka Barteczko, Anuradha Raghu, and Hayley Warren reported that “the market reaction to the war has been quick and dramatic. US prices for urea, which is widely used on corn crops, as of Friday were up $100 from the prior week to $570 a short ton, the highest level since October 2022, according to Bloomberg Green Markets. Some American suppliers have been pulling offers, Green Markets reported Tuesday. Egyptian granular urea prices were up about 20% to $585 per metric ton. Price estimates also increased sharply in Russia, one of the world’s top fertilizer producers.”
“In many cases, offers of products have been pulled and buyers are similarly waiting before committing, said Peter Harrisson, an analyst with researcher CRU Group,” according to Bloomberg’s reporting. “‘Much of the fertilizer market is waiting to assess the impact of the conflict on availability,’ he said.”
AgWeb’s Tyne Morgan reported that “one local Missouri retailer told AgWeb that in just a two-week period: Urea is up $140 per ton, NH3 has risen $100 per ton and UAN is also up $100 per ton.”
