Iran War Raises Concerns About Inputs
Iran War Raises Concerns About Inputs
Transcript
This week, price spikes in agricultural inputs due to the conflict in the Persian Gulf caused one rural advocacy group to petition the White House for assistance.
Farm Bureau President Zippy Duvall sent a letter to President Trump asking for fertilizer deliveries to America’s farmers be prioritized as the war with Iran creates blockages in the delivery of key inputs.
Iran has reacted to American attacks by firing on and threatening to sink ships passing through the Straight of Hormuz, effectively closing shipping out of the Persian Gulf.
Twenty percent of the planet’s oil passes through the Straight along with half of the world’s urea and 35% of all ammonia. Exports of these critical inputs are at risk due to the conflict. North American prices for urea have risen 25% since the United States began its bombing campaign March first.
The letter from the Farm Bureau proposes multiple paths, including using the U.S. Navy to maintain shipping lanes though the Strait of Hormuz, ensuring American transportation can move imported inputs to farmers, and dropping tariffs on imported agricultural inputs.
The Farm Bureau is concerned that high input costs will hurt farm profitability, and may reduce planted acres in multiple crops.
For Market to Market, I’m Peter Tubbs
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