Is America on the cusp of a farm crisis?

Farmers report sharp increases in fertilizer and diesel costs after reported disruptions around the Strait of Hormuz, while bankruptcies and farm debt were already rising before the conflict.

Many farmers in the Midwest say they face mounting pressures as spring planting begins and input costs rise. Reported attacks involving Iran and a subsequent, reported effective closure of the Strait of Hormuz have disrupted shipments of fertilizer ingredients and oil. Farmers and economists say those disruptions come on top of years of thin margins, rising debt and increasing bankruptcies. Key facts: - The Strait of Hormuz was reported as effectively closed by Tehran after attacks in late February, and that disruption has been linked to higher global fertilizer and diesel prices. - Farmers quoted in the article reported nitrogen fertilizer prices rising from about $795 per ton on Feb. 22 to about $990 per ton by the end of March, and AAA data cited diesel averaging $5.51 nationwide versus $3.76 before the conflict. - Chapter 12 farm bankruptcies reached 315 in 2025, an increase of about 46% year over year, and the Department of Agriculture had estimated farm sector debt could reach $624.7 billion in 2026. - The federal government announced $12 billion in aid to farmers in December, and the White House publicly discussed additional support and policy changes such as year-round E15 fuel sales. Summary: Rising input and fuel costs are placing additional strain on already-pressured farm finances, with farmers reporting plans to reduce inputs and expecting potential yield impacts and tighter margins. Undetermined at this time.