Texas farmers are facing surging fertilizer costs in early 2026, driven by Middle East conflict disrupting supply chains and rising energy prices, according to Texas Farm Bureau. For states like Texas, it is a double hit as many farms rely on diesel-powered equipment and long trucking routes to move those crops. For years farmers have been ignored while prices collapsed and costs kept rising. Now fertilizer and diesel are just one more nail in the coffin and farmers face one of the worst financial and mental health crises in our country’s history.
Agriculture experts say farmers are standing on the edge of a fertilizer cliff, with a large percentage of ingredients used to make fertilizer coming from through Middle Eastern shipping lanes, and with that region under fire, fertilizer prices are spiking as farmers prepare to plant in the spring.
In a new Market Intel report, American Farm Bureau Federation (AFBF) Economist Faith Parum noted that while prices have not hit the record highs they reached in 2022, some products—like phosphates— are climbing higher. Nitrogen prices have spiked significantly, with some producers seeing costs rise 150% compared to the previous year, causing concern over razor-thin margins.
Phosphates have had the sharpest price increase this year, with Gulf diammonium phosphate (DAP) prices rising from about $583 per ton in January 2025 to nearly $800 in August. Monoammonium phosphate (MAP) has followed a similar trend, reflecting the same pressures in production costs and export availability.
“Phosphate fertilizers are leading the increase, while nitrogen products are showing month-to-month swings, and potash is rising due to trade policy risks,” Parum wrote.
At the same time, Parum said the share of fertilizer within total farm production costs has not returned to earlier highs because other expenses are also climbing. She cited livestock expenses, electricity, cash labor, interest, rent and property taxes among the categories showing notable increases this year, adding to the overall pressure on farm budgets.
According to Successful Farming, urea, the nitrogen fertilizer imported most by the U.S., previously cost between $460 to $480 per short ton the last week of February, before the conflict started on Feb. 28. That high-low spread rose to $520 to $620 the first week of March.
The trucking industry – critical to many farmers - is also being hit hard with rising fuel costs.
The White House is looking at intervening to help farmers facing high fertilizer prices as a result of the U.S.Israeli military operation in Iran. Secretary of Agriculture Brooke Rollins said Friday the White House was looking at “every potential avenue to keep” these prices down. She said she was having conversations with lawmakers to seek out “additional funds for our farmers.”
“With what’s happening in Iran, what that means for specifically nitrogen urea, which is one of the key components of fertilizer, our farmers are moving into planting season right now,” said Rollins. “We are very close to having an announcement on some solutions on what that looks like.”
The secretary added that while some farmers have purchased their fertilizer for the planting season, many others have not.
The American Farm Bureau Federation first took issue with the drop in supply and rising costs, describing reports of companies freezing fertilizer sales at a critical time with planting season coming into full swing.
Fuel costs are also doing financial damage to both the agricultural and trucking sectors.
Diesel powers most of America’s farm equipment as well as 18-wheelers and the cost has skyrocketed since the conflict in Iran began, jumping more than 20% in states like Texas. In rural areas, the cost adds up quickly.
According to Joe Esparza, President of the Texas Trucking Association, the 80-cent spike when buying 150 gallon is a substantive cost.
For states like Texas, it is a double hit as many farms rely on diesel-powered equipment and long trucking routes to move those crops. Industry leaders say if these costs continue to climb, consumers can expect to see higher prices at the grocery store soon.