Nearly 60% of U.S. farmers say their financial conditions have deteriorated as fertilizer and fuel costs continue to rise, according to a new survey released by the American Farm Bureau Federation.
The survey was conducted between April 3 and April 11 and captures conditions as U.S. farmers begin spring planting, CNBC reported. It attributes rising input costs in part to global shipping disruptions linked to tensions affecting the Strait of Hormuz, a key transit route for energy and fertilizer-related shipments.
Fertilizer prices have increased sharply in recent weeks, with farmers describing sudden changes in input costs just as seasonal purchasing decisions were being finalized. The report notes that nearly six in 10 farmers or 58%, said their overall financial situation is worse compared with previous seasons, largely due to higher fertilizer and fuel expenses.
Regional differences are pronounced. Farmers in the Midwest reported comparatively higher levels of early fertilizer procurement, with 67% saying they had pre-ordered supplies ahead of the season. In contrast, only 19% of Southern farmers reported pre-booking fertilizer, leaving a larger share exposed to current market prices.
The survey also found that 78% of Southern farmers said they are unable to afford the full amount of fertilizer required for their crops. In the Midwest, that figure stood at 48%, while Western and Northeastern regions also reported elevated levels of affordability constraints.
Farm-level responses included accounts of sharply increased input costs. In North Carolina, farmer Lorenda Overman said during an American Farm Bureau Federation briefing that fertilizer and nitrogen costs on her farm rose significantly compared with the previous year, reflecting broader increases reported across the sector. She noted that purchasing decisions were delayed due to financial pressures from prior seasons, leaving less flexibility as prices rose ahead of planting.
The report states that many farmers are adjusting crop plans in response to input costs. A common shift involves reducing corn acreage, which typically requires higher fertilizer usage, and increasing soybean planting, which generally requires lower nitrogen input.
Oklahoma farmer Tommy Salisbury, speaking through the American Farm Bureau Federation's young farmers and ranchers program, said fertilizer price increases arrived just before planting decisions were finalized. He noted that many growers had already set budgets before the latest price changes took effect.
The CNBC report also cites concerns among farmers that current crop prices remain low relative to production costs, adding pressure to profitability during the 2026 growing season. Some producers described a mismatch between input costs and expected revenue from harvested crops.
The survey further highlights that more than 80% of rice, cotton and peanut producers report difficulty affording necessary inputs under current price conditions. These crops are among those most dependent on consistent fertilizer application, according to the findings.
Farmers in several regions are also adjusting fertilizer application rates, with some spreading available inputs more thinly across acreage to manage costs. These changes in input use are being reported alongside reductions in planted acreage for fertilizer-intensive crops.
The American Farm Bureau Federation said it plans to engage with policymakers in Washington in the coming months to raise concerns about input costs and farm-level financial pressures.
