US Farm Bankruptcies Hit 86 in Q1 as Iran War Lifts Fertilizer Prices 28%
Updated
Updated · Mother Jones · May 15
US Farm Bankruptcies Hit 86 in Q1 as Iran War Lifts Fertilizer Prices 28%
2 articles · Updated · Mother Jones · May 15
Eighty-six U.S. farms filed for Chapter 12 bankruptcy in the first quarter of 2026 as fertilizer costs surged during planting season, forcing some growers to cut output and leave acreage unplanted.
A 28% jump in nitrogen fertilizer prices since the Iran war began in February followed disruptions through the Strait of Hormuz, a chokepoint for about one-third of global nitrogen fertilizer shipments.
The squeeze is already changing planting decisions: about 70% of U.S. farmers reportedly cannot afford enough fertilizer, and roughly 4 million corn acres have shifted to soybeans, which need less fertilizer.
Higher diesel costs, export tariffs and concentrated fertilizer supply are worsening the hit to farm margins, while producers' revenues rise and senators say farmers have received little meaningful relief.
Analysts warn the shock could last into 2027 and, combined with drought and poor spring weather, may drive one of the worst U.S. wheat years in decades and push bread prices higher later in 2026.
As farmers abandon fertilizer-heavy crops, what permanent changes to our food systems and diets will we face?
The US-Iran conflict has weaponized global food supply. What are the consequences for nations not involved in the war?
With the Strait of Hormuz closed, can the world innovate its way out of dependency on chemical fertilizers?
Surging Fertilizer Prices Drive 46% Jump in U.S. Farm Bankruptcies: Q1 2026 Crisis and Global Implications
Overview
In Q1 2026, U.S. farmers are facing a severe crisis as farm bankruptcies have surged—up 46% nationally and 70% in the Midwest—mainly due to rising operational costs for essentials like fuel, fertilizer, and shipping. Mounting debt and the threat of a U.S. recession add to their financial stress. Globally, the closure of the Strait of Hormuz, a key shipping lane, has disrupted fertilizer supplies, driving up prices and fueling fears of a worldwide food crisis. These interconnected challenges are putting immense pressure on farmers and threatening both domestic and global food security.