The Iran war has led to a sharp increase in fuel and fertilizer prices, exacerbating an already difficult farm economy in Arkansas, which led the U.S. in ag bankruptcies last year. Agriculture is a crucial part of the state's economy, contributing $25.6 billion to the state’s economy in 2023. As Arkansas is the No. 1 grower of rice and the third-largest producer of poultry, stress on Arkansas farms could affect national food supply. Long-grain white rice prices in Arkansas have dropped to about $29 per 100 pounds, down from roughly $34.50 to $35.25 a year ago, according to USDA data. The price of fertilizers, the single highest cost for many farmers, has remained near peak levels, with urea prices jumping 59% since January. Fuel prices have surged since the start of the Iran war, with Arkansans paying $5 per gallon, up from about $3.24 a year old. The gap between rising costs and falling prices is widening, with input costs increasing 40% to 70% in the past few years. The latest developments in agriculture are seen as a sign that the federal government is working to help farmers adjust to manage costs.