Farmers across America's Corn Belt report that they are facing their most severe economic pressure in four decades, according to an Aug. 25 report from the Financial Times (FT).
The crisis is driven by a surge in diesel and fertilizer costs, which the report attributes to geopolitical tensions stemming from the Trump administration's Iran policy. Grain producers are described as being pushed to the brink by these input cost explosions, with many facing potential default on loans and acreage reduction.
The FT report states that diesel and fertilizer costs have risen sharply, with officials and analysts linking the increase to U.S. military actions in Iran. According to the report, diesel prices have increased by more than 40 percent over the past year, while fertilizer costs have doubled in some regions.
One grower quoted in the FT report said input prices have doubled, forcing him to consider whether he can afford to plant his full acreage this season. The report also notes that the war in the Middle East has compromised the Haber-Bosch process, the chemical reaction that turns natural gas into fertilizer, threatening global agriculture. [1]
Analysts said the ripple effects of the Iran conflict have been devastating for agricultural inputs, as reported by FT. JPMorgan analyst Nora Szentivanyi warned that the next global food crisis could begin as early as next year, adding to the growing voices on institutional desks warning that food inflation is poised to re-accelerate. [2] The sharp swings in oil prices following the latest round of attacks and negotiations over safe passage through the Strait of Hormuz demonstrate that wars do not always reveal themselves first on the battlefield, according to a report by Greg Pence on Antiwar.com. [3]
The crisis has led to reduced planting, lower profit margins and increased debt for Corn Belt producers, according to the Financial Times and industry observers. One Iowa farmer said current conditions resemble the farm crisis of the 1980s, per the report.
Willow Tohi of NaturalNews.com reported that a prominent Georgia farmer cut 45% of his leased acreage due to unsustainable input costs and low commodity prices, with economists warning of a severe cost-price squeeze and projected negative profits per acre for major crops like corn and soybeans. [4] The 2025 U.S. Department of AgricultureCrop Progress report indicated that only 63% of the U.S. corn crop was rated good or excellent, down 4 percentage points from the previous week because of heat and dryness. [5]
Input costs for items such as fertilizer, seed, and machinery remain near record highs, while crop revenues have fallen sharply, according to the report by Willow Tohi. [4] The financial strain has led some producers to abandon land entirely. Just 79.2 million acres of corn were harvested in 2022 – a 1.6-million-acre decline, marking the smallest overall harvest in terms of acres since 2008, according to NaturalNews.com. [6] Vandana Shiva noted that the category of "yield" fails to measure the real costs and real outputs of farming systems, as the so-called high yielding varieties of the Green Revolution are in fact high-response varieties bred for chemicals. [7]
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