American farmers struggle with higher prices from Iran war, tariffs: ‘Double whammy’
By Taylor Herzlich
Published on March 25, 2026.
American farmers are dealing with increased prices from the Iran war, which has disrupted global oil supplies and is leading to high fertilizer, feed and energy prices, threatening to push grocery prices even higher. The price of nitrogen, the main component of synthetic fertilizers, has risen 23.6% over the past year, according to February’s Producer Price Index. Harriet Behar, a lifelong farmer based in Wisconsin and member of the Organic Farmers Association, said that farmers are already dealing with a “double whammy” as they face cancellation of soybean orders from China due to high tariffs and other import taxes. The cost of producing crops is higher than the return, Behar said. Higher prices could be expected for shorter-season crops that rely on synthetic fertilizer, including lettuce and tomatoes, and for beef and veal at stores, which are already 14.4% higher than last year. The country's cattle herd population is at its lowest level since World War II due to drought and higher production costs, leading to lower profitability and decreased profitability. Meanwhile, Iran's effective closure of the Strait of Hormuz has resulted in national average diesel prices soaring to $5.37 a gallon, a more than 43% increase, and could cause prices for consumer goods like apparel, food and furniture. Analysts have also warned of potential shortages of liquefied natural gas.
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