As news of the Middle East conflict emerged, Chet Edinger, a corn and soybean farmer in South Dakota, immediately secured the last available batch of urea on the market. The price had already increased by over 22% since the end of last year, a record high he had witnessed.

Just a few days later, the market almost froze. "Now, even if you want to buy, there's none available", Edinger said.

A farmer walks through a soybean field in Illinois, US. Photo: Newsweek

This pressure stems from the near paralysis of the Hormuz Strait due to military conflict. This crucial maritime choke point transports about 20% of the world's oil and nearly one-quarter of its nitrogen fertilizer supply. Urea prices at the port of New Orleans surged from 475 USD to 683 USD per ton in just over a week.

Soaring production costs are directly affecting farms. John Boyd, founder of the National Farmers Association, stated that filling a tractor's fuel tank now costs around 469 USD. He is personally facing an 80,000 USD seed bill. "Costs are constantly rising, while agricultural product prices remain almost stagnant", Boyd explained. He revealed that about 170 member farms in the association are currently processing bankruptcy filings, unable to bear the expenses.

In Iowa, farmer Lance Lillibridge is reviewing years of financial records to balance his books. His farm annually requires sufficient urea, phosphorus, and potassium. Currently, anhydrous ammonia, a type of nitrogen fertilizer, has reached approximately 745 USD per ton, while diesel fuel stands at 4.6 USD per gallon (about 1.2 USD per liter). If he plants the full area as in previous years, the farm is certain to incur significant losses.

"We've experienced droughts, floods, and now this war", Lillibridge sighed. Near his farm, a three-generation farming family recently had to sell land to repay bank debts.

Lillibridge's situation reflects a broader challenge. The spring planting season is approaching, but many farmers cannot cover their costs. Forecasts suggest that corn acreage in the US could decrease to 37.6 million hectares, nearly 800,000 hectares less than initially planned.

This pressure extends beyond farms, impacting the entire food supply chain. Increased transportation and animal feed costs will directly affect supermarket shelves. Experts predict consumers could feel the significant rise in food prices within the next few months.

Ngoc Ngan (According to Newsweek)