Global Tensions Could Shape What Farmers Plant This Year

Spring planting is ramping up across the United States, and global tensions thousands of miles away could soon affect what ends up growing. A new Market Intel report from the American Farm Bureau Federation says instability involving Iran and other Persian Gulf countries is adding uncertainty to fertilizer and energy markets just as farmers are locking in their planting plans.

Timing is critical. Fertilizer purchases, field preparation and early nutrient applications are already underway nationwide. That includes major agricultural states like California, where producers rely on global supply chains to keep crops moving from the ground to grocery stores.

The report notes that countries tied to the Persian Gulf account for nearly 49 percent of global urea exports and about 30 percent of ammonia exports. Much of that supply moves through the Strait of Hormuz, a key shipping corridor.

If disruptions slow fertilizer shipments or push energy prices higher, farmers could face rising costs or adjust planting decisions. With margins already tight, that could affect yields, food supply and prices.

For a link to the full report, visit https://www.fb.org/market-intel/middle-east-tensions-raise-spring-planting-concerns