Rising diesel and fertilizer costs threaten U.S. farm profitability amid global energy turmoil

Global disruptions from the Iran war have sharply increased the price of diesel and nitrogen-based fertilizers, two essential inputs for American agriculture. Farmers such as North Carolina’s Matt Bell report that higher fuel costs are eroding profitability and forcing difficult decisions about crop yields. Congressional proposals to bar diesel exports aim to lower domestic prices, but industry experts warn this could backfire by reducing refinery runs and raising broader fuel prices.

The administration’s executive order to allow tax-free dyed diesel for highway trucks seeks short-term relief but may tighten supplies for farms during harvest. Meanwhile, livestock transport rates have risen, further inflating the cost of getting products to market. The combined effect threatens farm margins and could translate into higher food prices for consumers.