Fertilizer Costs Surge As Farmers Face Tight Margins

NASHVILLE, TN – Rising fertilizer and fuel costs are tightening margins for U.S. farmers during spring planting, with many unable to afford full input needs, according to a new American Farm Bureau Federation survey.

Nearly 70% of farmers reported they cannot afford all the fertilizer required this season, while diesel prices have surged roughly 46% since late February, driving up costs for fieldwork, transportation, and irrigation. Those increases are tied, in part, to global disruptions stemming from instability in the Middle East.

Fertilizer access varies widely by region. Midwestern producers, who typically pre-book inputs, reported higher availability, with about two-thirds securing supplies ahead of planting. In contrast, just 19% of Southern farmers pre-booked fertilizer, leaving them more exposed to rising prices.

Smaller farms face greater risk, as they are less likely to secure inputs early and more vulnerable to price spikes. Commodity differences also stand out, with cotton, rice, and peanut producers reporting the greatest affordability challenges.

Financial stress is widespread, with more than 90% of farmers reporting their financial condition has worsened or stayed the same compared to last year.

Farm-Level Takeaway: Rising input costs are forcing tough fertilizer decisions.