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| The U.S. fertilizer supply system doesn't have fertilizer reserves. China's does. (Photo by L. King, Unsplash) |
As the U.S.-Israeli conflict in Iran continues into its third week, fertilizer supplies needed by U.S. and Canadian farmers remain strangled in the Straight of Hormuz.
The loss of fertilizer imports in March catches farmers at a time when they are planning their spring planting rotations, reports Ed White of Reuters. "More than 30% of world nitrogen fertilizer exports, as well as
fertilizer components like sulfur, pass through the now effectively
closed Strait of Hormuz."
Besides delaying fertilizer supplies, the war has caused existing fertilizer prices to surge. White writes, "Any available [fertilizer] supplies have spiked more than a third since the war in Iran paralyzed global trade."
Farmers in both countries can scarcely afford the disruptions, since high input, labor and fuel costs already have many farms operating with razor-thin profits or at a loss. Unlike China, U.S. fertilizer suppliers "do not hold strategic reserves
of fertilizer," White adds. The lack of reserves leaves American
planters vulnerable to global supply chain shortages and price volatility.
Corn and wheat crops require liberal doses of synthetic urea to grow healthy yields. White reports, "The U.S., which in some years imports half of its urea fertilizer, is about 25% short of the usual supplies that farmers buy for spring planting, according to The Fertilizer Institute, which represents the U.S. fertilizer supply chain."
Even if the Strait of Hormuz opened today, some of the fertilizer bottle-necked there might be rerouted to countries willing to pay more. Josh Linville, a fertilizer market analyst at StoneX, told Reuters, "Not only am I worried about incoming vessels being turned around to other, better-paying destinations, there's an argument to be made, if somebody was willing to go and buy up (supply on) barges, to load them onto a vessel and export it."
"The American Farm Bureau Federation warned that fertilizer supply shortages could hit the U.S. food supply," White adds. "Most fertilizer needs to be applied before the crop starts growing, so
any supplies arriving too late cannot be used for the 2026 crop."






