War squeezes US farmers' fertiliser costs
Source: economist.com
TL;DR
- Fertiliser Surge: War with Iran has driven up fertiliser prices by $50 an acre for American rice farmer Jay Coker in Arkansas.[[1]](https://www.economist.com/united-states/2026/03/19/american-farmers-are-feeling-the-squeeze)
- $200,000 Hit: This adds an unexpected $200,000 to his costs for the season starting in April.[[1]](https://www.economist.com/united-states/2026/03/19/american-farmers-are-feeling-the-squeeze)
- Thin Margins: Coker says margins are razor-thin, worsening pressures on a struggling farming industry.[[1]](https://www.economist.com/united-states/2026/03/19/american-farmers-are-feeling-the-squeeze)
The story at a glance
American rice farmer Jay Coker in Arkansas faces higher costs for his spring planting due to surging fertiliser prices triggered by the war with Iran nearly three weeks before March 19, 2026. The article highlights how this hits an industry already under strain. It is reported now as planting season approaches in April.
Key points
- Jay Coker produces enough rice yearly for every American to have half a helping.
- Fertiliser price for his crop rose $50 per acre since the Iran war began.
- Extra cost totals $200,000 for this season's harvest.
- Coker describes current margins as razor-thin.
- Article datelined Atlanta, published in United States section of print edition.
- Subtitle notes surging fertiliser prices as a blow to a limping industry.[[1]](https://www.economist.com/united-states/2026/03/19/american-farmers-are-feeling-the-squeeze)
Details and context
The war with Iran, ongoing for almost three weeks as of the article, has disrupted fertiliser supplies, likely via the Strait of Hormuz, a key route for global trade including fertiliser exports from Gulf producers.[[2]](https://www.cnbc.com/2026/03/25/fertilizer-price-iran-war-food-security-inflation-urea-potash-nitrogen-farmers.html)
Coker's Arkansas rice paddies are planted in April on prairies, making the timing critical as costs rise just before harvest preparation.
American farming enters this with thin margins from prior pressures like low crop prices, though the article focuses on this acute fertiliser shock.[[1]](https://www.economist.com/united-states/2026/03/19/american-farmers-are-feeling-the-squeeze)
Key quotes
“We’re very concerned right now,” says Jay Coker. “Margins are razor-thin.”[[1]](https://www.economist.com/united-states/2026/03/19/american-farmers-are-feeling-the-squeeze)
Why it matters
Surging input costs like fertiliser threaten farm profitability at a vulnerable time, potentially rippling to food prices. Farmers like Coker face immediate cash squeezes that could force cutbacks in production or applications. Watch duration of the Iran war and any Strait of Hormuz reopening, as prolonged closure may worsen shortages.
What changed
Fertiliser was stable before the war; prices jumped $50 per acre in almost three weeks since outbreak. This adds $200,000 unexpectedly to Coker's costs. Change began almost three weeks before March 19, 2026.
FAQ
Q: Why have fertiliser prices risen for Jay Coker?
A: The war with Iran broke out almost three weeks before March 19, 2026, causing the price of his fertiliser to jump $50 an acre. This adds $200,000 to his season's costs as he prepares to plant rice paddies in Arkansas prairies in April. He produces enough rice yearly for every American to have half a helping.
Q: How does the Iran war affect American farmers according to the article?
A: It has driven up fertiliser prices right before planting season. The article spotlights rice farmer Jay Coker facing razor-thin margins from the added costs. This comes as a blow to an industry described as limping.
Q: What is Jay Coker's main worry?
A: He is very concerned about the unexpected $200,000 cost increase from higher fertiliser. Margins are already razor-thin for his large-scale rice operation in Arkansas. Planting starts in April, amplifying the timing issue.