Iran War Economic Spillovers

The war in Iran is disrupting fertilizer supply and driving sharp cost spikes and potential shortages for U.S. farmers — Tennessee grower Todd Littleton expects to pay roughly $100,000 more this season (about a 40% increase). Farm leaders warn that growers who didn’t preorder and prepay may not be able to obtain nitrogen at all as warehouses lack stockpiles, and CoBank economist Jacqui Fatka says prices wouldn’t drop quickly even if the conflict ends because of existing supply stresses from Russia’s war in Ukraine and China’s phosphate export cuts.