Brazilian Farmers Rethink 2026 Planting Investments as Iran War Drives Fertilizer Costs Higher
Updated
Updated · Bloomberg · May 21
Brazilian Farmers Rethink 2026 Planting Investments as Iran War Drives Fertilizer Costs Higher
5 articles · Updated · Bloomberg · May 21
Brazilian farmers are scaling back or reconsidering spending on land and crop inputs ahead of the 2026 planting season as fertilizer prices jump.
The squeeze comes from an Iran war-driven surge in fertilizer costs, hitting Brazil's farm sector at a particularly vulnerable moment.
Lower commodity prices, tight credit, heavy debt, unfavorable exchange rates and higher transport costs to ports had already weakened growers' finances before the latest spike.
That combination is pushing some producers toward a tipping point and raising risks for output from one of the world's biggest agricultural suppliers, with potential knock-on effects for global food supplies.
Could Brazil's bio-fertilizer secret for soybeans prevent a global famine in wheat and corn?
The Iran war is choking fertilizer supplies. Which nations are teetering on the brink of a food crisis this year?
As a new 'Shadow BRICS' bloc forms, is Russia becoming the new king of the global fertilizer market?
Fertilizer Crisis 2024: Geopolitical Conflict, Brazil’s Vulnerability, and the Global Food Security Threat
Overview
The ongoing Iran-U.S.-Israel war has triggered a major crisis in global fertilizer markets, causing severe disruptions that threaten agriculture worldwide, especially in Brazil. As the conflict intensifies, shipping through the Strait of Hormuz—a key route for fertilizer trade—has been heavily impacted, putting a large share of global fertilizer supply at risk. This has led to sharp declines in natural gas shipments, a crucial ingredient for nitrogen fertilizers, and driven up prices. Gulf states, which had become vital suppliers after earlier disruptions from the Ukraine war and China’s export limits, are now also affected, deepening the crisis for import-dependent countries like Brazil.