American farmers face soaring diesel prices and historic drought
Updated
Updated · ms.now · May 4
American farmers face soaring diesel prices and historic drought
10 articles · Updated · ms.now · May 4
Diesel averages $5.64 a gallon, up 48% since 28 February, while 95.5% of North Carolina is in severe drought or worse.
At a 200-acre farm in Elon, North Carolina, Vaughn Willoughby says parched pastures and failed hay growth are forcing him to feed cattle from dwindling reserves.
Drought now covers more than 60% of the continental US, while Hormuz disruption has raised fertilizer and plastics costs, with 70% of surveyed farmers unable to afford all needed fertiliser.
With costs soaring and fields barren, are American family farms facing an extinction-level event?
How can the U.S. insulate its food supply from escalating climate and global conflicts?
As military action closes a vital strait, how long until the global food supply chain fractures?
The 2026 U.S. Agricultural Breaking Point: Fuel Costs, Drought Impact 61% of Farmland, and Fertilizer Disruptions
Overview
In Spring 2026, the Iranian conflict triggered a disruption at the Strait of Hormuz, causing diesel fuel prices to surge dramatically. This spike increased fertilizer costs and made irrigation unaffordable for many farmers already struggling with a record-breaking drought affecting 61% of the U.S. The combined impact forced farmers to cut back on irrigation and fertilizer use, leading to lower crop yields. These reduced supplies, along with high input and transport costs, drove food prices higher, disproportionately affecting vulnerable households. Global fertilizer shortages and U.S. production shortfalls tightened food supplies worldwide, prompting export restrictions that worsened conditions for low-income countries. In response, the USDA launched a $12 billion aid program, while farmers adopted precision agriculture and drought-resistant crops to build resilience.