DES MOINES, Iowa — U.S. farmers are assessing whether recent declines in fertilizer prices following a U.S.-Iran agreement and the reopening of the Strait of Hormuz will translate into meaningful savings, as many producers say much of their fertilizer for the 2026 growing season was purchased before prices began to ease.
Fertilizer markets have retreated in recent weeks after energy and commodity prices fell following the agreement and the resumption of Gulf shipping traffic. The International Monetary Fund said on Wednesday that fertilizer and other commodity prices had declined as shipments resumed, though it cautioned that full market normalization would take time because of shipping delays and broader uncertainty.
The conflict involving Iran earlier this year disrupted trade through the Strait of Hormuz, a key route for energy products and fertilizer exports. Analysts said the disruption contributed to sharp increases in fertilizer costs during the spring planting season, particularly for nitrogen-based products such as urea.
Since the announcement of the agreement, benchmark fertilizer prices have moved lower. Market reports cited by agricultural publications showed urea prices falling significantly from spring peaks, while retail fertilizer surveys indicated lower prices for several major nutrients compared with a month earlier.
Many farmers, however, say the immediate benefits may be limited. Ryan Poe, a wheat farmer in Washington state, told NPR that lower market prices had not yet translated into lower costs on his operation because fertilizer had already been purchased. “Maybe a global supplier of fertilizer sees that kind of instant price change,” Poe said. “But for me on the farm there's been no change in fertilizer price.”
Agricultural economists have noted that the timing of purchases is a key factor in determining how much relief producers receive. Researchers at the University of Illinois said many farmers locked in fertilizer supplies before prices surged, limiting the impact on this year's costs, while others who delayed purchases faced substantially higher expenses.
Farm organizations have also emphasized that fertilizer is only one component of broader production costs. Earlier this week, the Trump administration requested additional farm assistance, citing elevated fuel and fertilizer expenses that affected producers during the conflict period. Farm advocates told Reuters that financial pressures remain despite recent easing in some input markets.
Market analysts said certain fertilizer categories continue to face supply constraints and that prices for some products remain above levels seen before the conflict escalated. Shipping and logistics networks are also still adjusting to the reopening of trade routes.
As of Friday, fertilizer prices were generally lower than their spring highs, according to market data and industry reports. Farmers, suppliers and agricultural economists said they would continue monitoring input markets ahead of purchases for the 2027 growing season, when the effects of recent price movements may become more apparent.
