The Digester
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Iran war pushes diesel and fertilizer costs up, squeezing U.S. farmers

Rising diesel and fertilizer prices tied to the Iran war are compounding existing losses for U.S. farmers, increasing bankruptcies and jeopardizing spring planting.

Mar 29th 2026 · United States

Insights

  • Diesel prices are up 43.5% since the Iran war began, according to AAA.
  • Ammonia and urea prices have risen about 20% and 50% respectively, per Oxford Economics.
  • U.S. farm bankruptcies increased 46% from 2024, the American Farm Bureau Federation reports.
  • Farmers say input costs are about 25% higher year over year, threatening spring planting plans.
  • Experts warn higher fuel and input costs will raise food production costs and likely push prices higher for consumers.

Sources