USDA officials are keeping close watch on fertilizer markets as shipping delays stemming from the U.S.-Israel war with Iran spike prices and jeopardize access to critical chemicals for farmers at the start of growing season.
Iran’s blockade of the Strait of Hormuz, a crucial waterway for exports from the region, has effectively halted shipments of products including raw materials including urea, nitrogen and phosphate. Luke Lindberg, USDA’s undersecretary for trade and foreign agricultural affairs, said the Trump administration wants to be sure the increases are not the result of price gouging.
“We’ve been tracking the recent increase in fertilizer prices,” Lindberg told POLITICO in an interview, adding that the administration may make an announcement on the issue soon. “The president will be very clear, and Secretary Rollins as well, that any company or any part of the fertilizer supply chain who tries to use this opportunity to price gouge American farmers and ranchers will not be tolerated.”
Middle Eastern countries including Qatar and Saudi Arabia provide a significant share of the raw materials used in producing fertilizer for U.S. farmers. Shipping delays caused by the ongoing conflict in the region could deal another blow to farmers already reeling from high production prices and tariff-related market losses.
