US agriculture faces worst economic crisis in 40 years

American farmers, particularly those in the Corn Belt, are facing their most severe economic crisis in 40 years. The downturn is driven by soaring input costs for fuel and fertilizers, exacerbated by geopolitical tensions. Conflict with Iran has disrupted trade through the Strait of Hormuz, impacting the fertilizer supply chain just as planting seasons approach.

Phosphorus-based fertilizer prices have nearly doubled over the last decade, rising from approximately $470 per ton to over $900 per ton. Additionally, diesel prices have seen significant increases, rising from $3.81 to $5.45 per gallon.

The American Farm Bureau Federation projects that without government intervention, losses for farmers growing nine major crops will reach $31 billion in 2026 and $32 billion in 2027. This would mark the sixth consecutive year of operating at a loss for many producers.