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A Center for American Progress analysis found that the war is "forcing rural households to pay at least $26 more per week at the pump and threatening to push grocery prices even higher in the months ahead."
President Donald Trump won the 2024 election largely on a promise to alleviate the affordability crisis, but an analysis published Friday underscores how rural Americans—the bedrock of the MAGA base—are disproportionately paying the price for the US-Israeli war of choice on Iran.
"Rising gas and fertilizer prices tied to the Trump administration’s war in Iran are driving up costs for rural families, farmers, and consumers across the country," notes the analysis from the Center for American Progress (CAP), a liberal think tank.
"Gas prices rose 52% between February 27, the day before the war with Iran began, and May 14, forcing rural households to pay at least $26 more per week at the pump and threatening to push grocery prices even higher in the months ahead," the publication continues.
"The economic fallout from the conflict is disproportionately affecting rural America, where households already spend significantly more on gasoline and energy and where farm operations depend heavily on diesel fuel and fertilizer," CAP added. "As oil prices rise and shipping through the Strait of Hormuz remains disrupted, farmers are facing mounting input costs during an already difficult economic period."
CAP researchers also found that the gap between urban and rural fuel costs has increased from $46 to $70 per month since the start of the war.
With diesel fuel accounting for over 60% of their fuel expenditures, farmers are facing the prospect of paying at least $350 more per day to operate a single tractor.
"There are 453 farming-dependent counties across the country, and rising fuel and fertilizer costs could force more small and medium-sized farms out of business if disruptions continue," the analysis warns.
As Common Dreams reported this week, Trump's illegal war of choice and erratic tariff policies are hurting farmers and consumers while Big Ag profits from fast-rising fertilizer and food prices.
Likewise, while consumers feel the pain of skyrocketing pump prices, Big Oil is reaping prodigious profits fueled by scarcity and market uncertainty due to the closure of the Strait of Hormuz and other war-related causes.
A report published earlier this month by the office of Sen. Ed Markey (D-Mass.) projects that US drivers could pay an additional $876 per year—or $1,753 for a family with two cars—on gasoline per year if pump prices remain at their current levels.
The CAP analysis comes on the heels of the latest consumer price index, released earlier this week, which revealed that inflation has risen to its highest level in three years largely due to rising fuel and food costs.
According to CAP, lower-income households—which spent a third of their pretax income on food in 2024—"will be hit hardest" by rising grocery prices, as the highest-income households spent just 6.4% of their before-tax earnings on food.
“Families in rural communities are already stretched thin, and this conflict is making everyday necessities even more expensive,” CAP senior fellow and analysis co-author Anne Knapke said Friday. “Higher gas prices, rising fertilizer costs, and more expensive groceries are all contributing to an affordability crisis that this president is making worse every day.”
Asked earlier this week if he thinks about the financial hardship his war is inflicting on Americans, Trump flippantly replied, "Not even a little bit."
"While a few agrochemical giants shamelessly reap bumper profits, farmers are watching their livelihoods wither on the vine," said one Greenpeace campaigner.
Democratic lawmakers on Wednesday underscored how the US-Israeli war on Iran and Trump administration trade policies are hurting farmers and consumers while Big Ag profits from fast-rising fertilizer and food prices.
President Donald Trump's illegal war of choice has resulted in the closure of the Strait of Hormuz, through which around 30% of the world's fertilizer and 20% of its oil previously passed. In addition to increasing the risk of a global food crisis, the strait's closure has sent fuel and fertilizer prices soaring, with US farm diesel costing nearly 50% more than it did on the war's eve in February and nitrogen fertilizer rising by a similar percentage.
Meanwhile, Trump's erratic tariff war has further squeezed farmers and consumers. Tariffs have increased short-term prices, market volatility, and farmer costs while temporarily reducing import flows.
Vermont farmers "are footing the bill for Trump's reckless war in Iran," Rep. Becca Balint (D-Vt.) said Wednesday on social media. "Fuel and fertilizer costs are surging right amid planting season, hitting family farms that are already stretched thin. This needs to end."
Rep. Shri Thanedar (D-Mich.) said on X that "food prices are skyrocketing because 70% of farmers can't afford fertilizer, due to Trump's reckless Iran War," adding that "perhaps Trump should help them out by lending some, given that he's full of crap."
Rep. Betty McCollum (D-Minn.) noted Tuesday on Bluesky that "Minnesota’s farmers are dealing with tariffs, high fertilizer costs, expensive feed, and exorbitant fuel prices," while Trump is "planning to lay off dozens" of US Department of Agriculture workers "who help farmers protect their land and water."
The lawmakers' posts followed Tuesday's US Senate Agriculture Committee hearing on fertilizer market challenges, during which members of the Republican majority spoke vaguely of "trade disputes" and the "recent conflict in the Middle East" without naming names.
When it was her turn to speak, Ranking Member Amy Klobuchar (D-Minn.) noted the "direct link" between the soaring price of nitrogen fertilizer components and Trump's actions.
"In the months since the president started the war, with no consultation or authorization from Congress... urea has spiked more than 40%, the cost of diesel has hit near record highs in Midwest states," she said. "Now, why? Well, nearly half of the global urea goes through the Strait of Hormuz. Thirty percent of ammonia goes through the Strait of Hormuz."
Farmers are facing fertilizer prices that are through the roof because of the across-the-board tariffs, market consolidation, and uncertainties stemming from a war in Iran that was started with no consultation or authorization from Congress.
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— Senator Amy Klobuchar (@klobuchar.senate.gov) May 12, 2026 at 5:51 PM
"Yet, even before the war, farmers were walloped by the presence of across-the-board tariffs," Klobuchar continued. "An analysis by North Dakota State University... found that [International Emergency Economic Powers Act] tariffs added nearly $1 billion in costs to critical inputs like fertilizer, seed, machinery, and chemicals from February through October of last year."
"Acting now will ultimately help stabilize prices and give farmers the certainty they need," the senator added. "But it is going to have to be a combination of things: ending the tariffs, or reducing them, or making them much more targeted; ending this war; finding a way to resolve it, so the Strait of Hormuz is open again; and then going at this long-term systemic problem about the lack of competition in this area."
According to the advocacy group Farm Action, a handful of companies—primarily Nutrien, Mosaic, and CF Industries—dominate the North American fertilizer market, operating as an oligopoly that controls over 90% of nitrogen and potash production. Saskatchewan-based Nutrien, the world's leading potash producer, last week reported net first-quarter earnings of $139 million, up from $19 million one year ago.
"Fertilizer companies raise their prices because they can, and that's the market power that they have," Sen. Tina Smith (D-Minn.) said during Tuesday's hearing.
Noting record gains reaped amid the tumult of Russia's ongoing invasion of Ukraine, Smith said that during 2021-22, "the nine largest fertilizer companies made an estimated $84 billion in profits."
"In 2022, major fertilizer companies saw profits increase somewhere between 100 and 200%," she continued. "Their input costs did not go up by that much... How much do you think the profits of the average farmer in South Dakota [went] up during that time period?"
Pointing to new reports of robust fertilizer industry profits, South Dakota Corn Farmers president Trent Kubik replied, "during these last 75 days, a lot of money was being made, but it wasn't by farmers."
Addressing the question of "what can we do to change the behavior of companies that are in a position where they can charge such high prices and get such exorbitant profits," Smith suggested considering a "windfall profits tax" to "make the market more fair, particularly for folks that are doing the work."
The Trump administration's plan to counter high fertilizer prices includes reopening the Biden-era Fertilizer Production Expansion Program, which provides grants and financing to build or expand domestic manufacturing capacity. Some critics have slammed the program as a form of corporate welfare.
The administration is also considering further expanding a multibillion-dollar bailout program, which critics say has mainly benefited large-scale, export-oriented commodity farms.
Responding to recent reports of strong profits for nitrogen fertilizer producers, Greenpeace Aotearoa (New Zealand) Big Ag project lead Amanda Larsson said Tuesday that “the illegal US-Israeli attack on Iran has sent global fertilizer prices soaring, and while a few agrochemical giants shamelessly reap bumper profits, farmers are watching their livelihoods wither on the vine."
"This is war profiteering facilitated by a broken, fossil fuel-dependent food system—with farmers and consumers paying the price," she continued.
“Synthetic nitrogen fertilizer causes water and climate pollution, while propping up a system of industrial over-production, particularly to produce monoculture feed crops for livestock," Larsson said. "We are sacrificing our rivers, our climate, and our financial security to prop up a system that serves billionaires, not communities."
“We cannot buy food security on a volatile global chemical market," she added. "The only path to true food sovereignty and resilience is through a transition to ecological farming. By moving away from synthetic fertilizers and toward diverse, nature-based practices, we can break the cycle of chemical dependence, protect our water, and ensure that the price of food is no longer dictated by the whims of war and corporate greed.”
Petrochemical fertilizers built modern agriculture. The Iran War may be what finally breaks it—and opens the door to something better.
As the US-Israel war in Iran drags on, here at home, the billions spent on the war and the spiking gas prices drive the political conversation. The impacts on world food supplies could be far more consequential, though, raising questions about our dependence on globally traded chemical fertilizers—and about the alternatives.
The global food system relies on massive applications of petrochemicals, and up to 30% of fertilizer trade comes through the Strait of Hormuz. With the exception of pre-industrial and organic or regenerative practices, the world’s agriculture relies on these chemicals, making them vulnerable to price shocks and supply constraints.
Nitrogen fertilizer prices have climbed by 30% since the initial attack on Iran on February 28; urea prices have increased by 47%. Seventy percent of farmers responding to an American Farm Bureau survey say they are unable to afford all the fertilizer they need. Meanwhile, farm diesel prices have increased 46% since the end of February.
The effects of these price shocks take time to ripple through the planting and harvesting season, but they will likely show up as higher prices, along with empty store shelves, and—especially in impoverished regions—hungry children. Farmers are already making tough choices about what, and if, to plant given the colliding impacts of tariffs, extreme weather related to climate change, and the ongoing blockade of the Strait of Hormuz.
The Iran war’s fertilizer choke hold is just one reason regenerative agriculture deserves our active support.
“Every fossil fuel crisis reminds us how vulnerable conventional agriculture is,” says Gabrielle Taus, managing director of the nonprofit group Commonland. "Farmers tied to synthetic fertilisers are exposed to price shocks they cannot control.”
These price spikes come just at a time when farmers are also being squeezed by President Donald Trump’s tariffs and by a chaotic climate. Much of the West and Southeast US is under drought emergency conditions. The Midwest has been hit by storms and extreme temperature fluctuations. The journal Nature Climate Change estimates that human-caused climate change has already reduced agricultural productivity by 20%.
These converging shocks are adding to interest in regenerative agriculture. While the definition of this form of agriculture varies—and the term can sometimes be used for greenwashing—regenerative agriculture relies on the resources at hand (or under foot) to nourish the soil, instead of purchasing fertilizer from global petrochemical corporations. By combining age-old techniques of cover crops and crop rotation, compost, and animal husbandry, the soil is nourished, not depleted, and it is better able to retain moisture. Unlike corporate farming, this form of agriculture offers a buffer from global conflicts and trade wars and the impacts of climate change. And the farmers who adopt this approach develop an understanding of how to best manage farms that can thrive in a particular place. And their practices could contribute to revitalizing not only fresh water sources and ecosystems but also the vitality of hollowed-out rural communities.
Many experts question whether regenerative agriculture can actually take the place of industrial agriculture. A decades-long study by the Rodale Institute, which advocates for organic methods, suggests that with skill and persistence, these techniques work. Their side-by-side plots in Kutztown, Pennsylvania compared regenerative practices, including cover cropping, crop rotation, and composting, with conventional agriculture. The result was yields up to 30% higher for sustainable methods during extreme weather, profits that were 3-6 times higher overall, the use of 45% less energy—and 40% lower carbon emissions.
The work of the farmers also shifts, from using massive machinery and one-size-fits-all industrial farming methods, to the sort of deep knowledge that comes from knowing the microclimate, soil conditions, and water supplies of a particular place.
Regenerative farms become a productive and integrated part of not only the natural ecosystem but the social system.
Among young farmers, regenerative practices are already taking hold. According to the National Young Farmers Coalition's 2022 survey of more than 10,000 farmers age 40 and younger, 86% already describe their practices as regenerative. With the average age of today’s farmers at 58 years old, a new generation of farmers will have a major say in how tomorrow’s crops are raised.
Matt Turino, who manages the Sustainable Farm at the University of Illinois campus in Champaign Urbana, works with students who are learning the skills of sustainable and regenerative farming. “They talk a lot about growing food in their communities, resilient food production, changing the food systems so they’re not relying on international markets and big international disruptions like the Strait of Hormuz situation,” he said. They want a more ecologically minded food system, he added, that is healthy for their families and for the environment.
These practices could offer the next generation a livelihood that artificial intelligence cannot replace and that distant wars and blockades cannot upend.
Soil health is key to any farming. Regenerative practices enhance the microorganisms, organic content, and nutrients that comprise a healthy soil ecosystem. These practices not only result in higher yields, crops that are better able to resist disease and pests, and better water retention—they also enable soil to pull carbon out of the air and form it into a healthy part of the soil ecosystem.
Agriculture is responsible for about a third of all human-caused greenhouse gas emissions. Addition of nitrogen fertilizer to croplands is a powerful source of climate pollution, but regenerative approaches can actually store carbon deep in the soil, reducing the amount of carbon in the atmosphere. And these approaches avoid the fish-killing algae blooms and cancer clusters suspected to be caused by nitrogen fertilizer runoff.
At a time when fresh water is becoming scarce as a result of overuse and drought, regenerative approaches increase the capacity of soils to hold water and to prevent the erosion and flooding that results from compacted soils. For every 1% increase in soil organic matter, soil is able to hold 20,000 gallons more per acre, according to the US Department of Agriculture.
Many regenerative farmers raise animals along with crops. Rotational grazing and the use of manure helps build soil health. This is a marked contrast to today’s giant animal factory farms, where workers are poorly paid and at risk of injury, and animals are penned up inhumane conditions, while overflows of manure threaten fresh water supplies.
Regenerative farms become a productive and integrated part of not only the natural ecosystem but the social system.
Regenerative farming offers the intriguing possibility of ecosystem recovery and the recovery of rural communities.
For decades, the growth of industrial farming has pushed out small and medium-sized farms. Especially hard hit are farms owned by African American and Latino families. As a few giant landowners manage farms that once provided livelihoods to many smaller farm families, rural communities across the United States have been hollowed out. As farms are sold off, the local farm supply stores, mechanics, veterinarians, insurance brokers, schools, and restaurants that once served farm families closed up.
The competitive advantage of a regenerative farmer is their deep knowledge—not the adoption of one-size-fits-all chemical regimes and expensive technology. They learn the sorts of skills and wisdom our farming ancestors had. Regenerative practices require an understanding of particular microclimates, water availability, and soil conditions. The farmer must learn to choose seed varieties and to implement practices that optimize for human and ecological health as well as for economics.
If anything positive emerges from the war in Iran, it could be the expanded awareness that we do have choices about the future of agriculture.
“The particular knowledge of particular places is beyond the competence of any centralized power or authority,” writes Kentucky farmer and poet Wendell Berry in his book, What Are People For? (Counterpoint Press 1990) “Farmers must tend farms that they know and love… using tools and methods that they know and love, in the company of neighbors that they know and love.”
“We uplift the honor and dignity of labor,” say the creators of Soulfire Farm, an Afro-Indigenous community farm and training center located in upstate New York. “We center the sharing of practical, tangible, land-based skills that contribute to community self-provisioning and self-determination. With wise effort, our work is our love made visible.”
The Iran war’s fertilizer choke hold is just one reason regenerative agriculture deserves our active support. Regenerative farming can prevent the pollution of increasingly scarce fresh water resources, rebuild depleted soil, and slow climate change. These practices are more resilient and able to adapt to weather shocks, and they provide a source of stable employment at a time when jobs of all sorts are being displaced by AI. And with permanent farm employment come the opportunities for families to once again inhabit and rebuild hollowed-out rural communities.
It is hard work, and unlikely to make anyone rich. But regenerative farmers and ranchers say “their notion of ‘success’ goes beyond yield and farm size,” according to Lara Bryant, at the Natural Resources Defense Council, an environmental group. “It includes things like joy and happiness, the number of families they feed, watching how the land regenerates and flourishes, the money saved from not purchasing chemical inputs, the debt avoided by repurposing old equipment, and the relationships built with community members.”
If anything positive emerges from the war in Iran, it could be the expanded awareness that we do have choices about the future of agriculture.