Cease-Fire Has Not Lowered Fertilizer Prices

National Association of Farm Broadcasting

A cease-fire in the Middle East has helped lower crude oil prices, but U.S. farmers are still facing sharply higher nitrogen fertilizer costs as global shipping disruptions continue, according to a University of Illinois analysis. Agricultural economist Gerald Mashange (muh-shawn-gee) said fertilizer markets have not followed the recent decline in oil prices because vessel traffic through the Strait of Hormuz remains well below pre-conflict levels. Higher insurance costs and continued risk concerns have discouraged many shipowners from resuming normal routes. The shipping bottleneck has kept supplies tight for key crop nutrients. Mashange reported urea prices were up about 41% from the week before fighting began in February, while anhydrous ammonia prices had risen more than 29% through mid-April. For corn growers, the increases add an estimated $30 to $55 per acre in production costs this season. Those added expenses come on top of projected losses of $40 to $80 per acre for the 2026 corn crop outlined earlier this year.