Strait of Hormuz shutdown: The impact of supply disruptions on U.S. agriculture

Farmers Warn of Rising Costs Amid Strait of Hormuz Disruption

American farmers are cautioning President Donald Trump that the shutdown of the Strait of Hormuz could push fertilizer prices even higher as planting season begins, which may ultimately result in increased food costs for consumers.

In a letter addressed to Trump, the American Farm Bureau Federation (AFBF) highlighted that both fuel and fertilizer prices have surged since Iran blocked the Strait. Approximately 30% of fertilizer materials like phosphate and urea, as well as finished fertilizers, and 20% of crude oil from the Persian Gulf, are transported through this vital waterway to markets worldwide, including the United States.

AFBF President Zippy Duvall pointed out that farmers are already facing a significant drop in income due to rampant inflation and falling crop prices. He warned that ongoing shipping disruptions and energy shortages in the Gulf region could further impact the cost and availability of essential supplies for agriculture. These supply chain interruptions are likely to drive input costs even higher, squeezing already thin profit margins and putting many farmers in financial distress.

Duvall urged Trump to make the delivery of fertilizer components a top priority to prevent potential crop shortages.

He emphasized, “This situation threatens not only our food supply but also national security. A sudden disruption in production could fuel inflation throughout the U.S. economy.”

The AFBF has requested that the U.S. Navy provide escorts for fertilizer shipments passing through the Strait, although the Pentagon has deemed this option too risky. The group also encouraged collaboration with other nations to keep shipping routes open.

Additionally, farmers are asking for support in securing insurance for shipping and improving domestic transportation infrastructure—such as ports, railways, and barges—to expedite deliveries. They have joined other industries in advocating for a temporary waiver of the Jones Act, which mandates that goods transported between U.S. ports be carried on American-flagged vessels. Reports suggest Trump is considering this measure for fuel shipments.

The federation also requested a temporary halt on countervailing duties for imported fertilizers to help keep prices in check.

“We are seriously worried that inaction could trigger food supply chain disruptions similar to those seen in 2022, when food inflation hit a 40-year peak,” Duvall added.