High energy costs from Iran war heighten pressure on struggling farmers
Summary
The war in Iran has caused fuel and fertilizer prices to rise sharply, putting financial pressure on farmers in Louisiana. High costs for jet fuel and nitrogen fertilizer make it harder for farmers to afford necessary supplies, threatening their businesses.Key Facts
- Jet-A fuel used by agricultural planes rose from $2.46 per gallon in February to $4.11 in May.
- Farmers like Reed Keahey buy large amounts of jet fuel; he spent over $30,000 on one fuel purchase when prices peaked.
- Nitrogen fertilizer called urea is needed for crops, and nearly half of global urea exports come from the Persian Gulf.
- Shipping problems in the Strait of Hormuz during the Iran war disrupted supply, causing fertilizer prices to spike.
- Farmers David and Theresa Guererro are over budget by about $120,000 to $130,000 on fertilizer costs.
- U.S. farm bankruptcies increased by 46% from 2024 to last year, according to the American Farm Bureau Federation.
- Some agricultural businesses are absorbing higher costs instead of passing them to farmers, risking their survival.
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