U.S. seeks backup fertilizer suppliers to reduce damage to American farmers facing soaring costs and shortages

Farmers apply fertilizers just before or during spring 
planting. (Photo by Brandon Griggs, Unsplash)

With many crop fertilizers and fertilizer materials trapped by Iran's stranglehold on the Strait of Hormuz, the Trump administration has sought out countries that can produce or supply backup fertilizers for American farmers facing soaring fertilizer costs as they ramp up for spring plantings, reports Skylar Woodhouse of Farm Progress. American farmers already face economic headwinds from slowed trade with China, high fertilizer and fuel prices, high labor costs, and farm worker shortages.

White House National Economic Council Director Kevin Hassett told reporters earlier this week that the Trump administration was looking for ways to minimize U.S. fertilizer shortages. "Hassett said the U.S. has 'established licenses for Venezuela to produce more fertilizer,' and has held discussions with Morocco," Woodhouse writes.

Reuters reported that roughly 30% of the world's nitrogen fertilizer supply would normally go through the Strait of Hormuz. Woodhouse reports, "One facility in Qatar had produced so much fertilizer that it supplied 'maybe about 20%' of the U.S. market, according to Hassett. The Iran conflict has mostly shut the key Strait of Hormuz passage for ships."

A March 13 letter from the American Soybean Association, the National Corn Growers Association, and other organizations asked fertilizer manufacturers Mosaic and Simplot to rescind their support for countervailing duties on phosphate fertilizer imports from Morocco and Russia, which contributed to spiking fertilizer costs even before the Iranian conflict.

As the war with Iran continues, farming fertilizer isn't the only pivotal import that relies on transport through the Middle East. Alexander Osipovich of The Wall Street Journal reports, "A protracted conflict with Iran could curtail exports of many inputs into the global supply chain. . . ranging from agriculture to chemicals and pharmaceuticals."

Osipovich includes a list from Barclays analysts on "some key non-energy products exported from nine Middle Eastern countries affected by the conflict." It's shared below.

62% of limestone flux, which is used in construction and is primarily sent to India
47% of sulfur, used for fertilizers and chemicals
28% of acyclic alcohols and derivatives, used as industrial chemicals and as fuel additives, and mostly exported to China
23% of polymers of ethylene, used in plastics manufacturing
23% of nitrogenous fertilizers, used in agriculture
20% of diamonds, with key processing hubs in Israel and the United Arab Emirates, though they are mined elsewhere
18% of unwrought aluminum

Farming fertilizer stuck in the Strait of Hormuz leaves U.S. farmers roughly 25% short of needed supply

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."

A $700 million regenerative farming pilot program may falter without the needed USDA staff and expertise

Clover is a "workhorse" cover crop used in regenerative
farming. (Photo by Veronica White, Unsplash)

Despite a $700 million budget and farmers excited about the program, the Regenerative Agriculture Initiative may have trouble getting off the ground. "The USDA’s Natural Resources Conservation Service has lost more than 2,000 employees since January 2025, potentially harming the department’s ability to roll out the initiative," reports Claire Carlson of The Daily Yonder.

The initiative was announced last December as a joint effort by the USDA and the Department of Health and Human Services to help farmers incorporate more regenerative farming practices, such as cover crops and no-till farming.

For the most part, the Trump administration's NRCS layoffs mostly terminated newer or early-career employees, who "are the employees who would have likely helped with the rollout of the Regenerative Agriculture Initiative," Carlson reports. "Without the necessary staffing, the initiative could falter — even though it’s likely to be very popular among farmers."

At its current staffing levels, the NRCS doesn't have enough employees to help farmers through the application and award process, and it may lack personnel with the right expertise, Carlson reports. 

When the Regenerative Agriculture Initiative was announced, U.S. Secretary of Agriculture Brooke L. Rollins, U.S. Health and Human Services Secretary Robert F. Kennedy,Jr. and Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz issued a shared press release extolling the need for "American farmers [to] adopt practices that improve soil health, enhance water quality, and boost long-term productivity, all while strengthening America’s food and fiber supply."

It's unclear how American farmers can meet those goals without the necessary USDA staff at the Natural Resources Conservation Service to support farmers who want to participate in RAI. Carlson adds, "For farmers planning to apply for funds through the initiative, it’s quite possible their questions to the agency will go unanswered with fewer people on the job to assist."