American Farmers Are Facing the Worst Crisis in Decades Amid War in Iran

Farmers across the Midwest say they are getting crushed — and they don't see relief coming anytime soon.

The cost of diesel, fertilizer, and basic equipment has surged since the U.S. launched its military campaign against Iran in February. Add in years of low grain prices, Trump's trade war cutting off soybean sales to China, and one of the worst droughts Nebraska has seen in over a century — and you start to understand why farmers are using words like "unprecedented" and "worst in my career."

A fertilizer called 11-52-0, used at planting time, cost $470 a ton a decade ago. It now runs over $900. Diesel — the fuel that powers tractors, combines, and every other piece of heavy equipment on a farm — has jumped from $3.81 a gallon before the Iran war to $5.45 a gallon today.

An industry study found that farmers growing major crops like corn and soybeans will lose $31 billion this year with no government help — and $32 billion next year. Corn growers are losing $131 per acre. Soybean growers are losing $80 per acre. Next year, those losses are projected to get worse.

"This is the worst financial downturn in the sector since the 1980s," said John Hansen, president of the Nebraska Farmers Union.

When the U.S. attacked Iran in February, it disrupted oil shipping through the Strait of Hormuz, a narrow waterway that a huge portion of the world's oil passes through. That sent diesel prices spiking. It also disrupted the global supply of fertilizer, which was already expensive after Russia invaded Ukraine in 2022.

Pam Johnson, an Iowa farmer and former president of the National Corn Growers Association, put it plainly: "It's projected that farmers aren't going to make any money for the next two years."

Nebraska has had one of its driest years since records began in 1895 — about three inches below normal rainfall through July. Farmers across the Sandhills region say some areas haven't had meaningful rain since last fall.

"Our droughts are worse, our heavy rainfall events are worse, our winds are worse," said John Dittrich, a corn and soybean farmer near Meadow Grove, Nebraska. He's been farming for 44 years and says the risk to his operation "is higher than it's ever been."

The dry conditions are pushing corn prices up — corn for December delivery has already jumped 10 percent this month to $5.15 a bushel, the highest since 2023. That's bad news for farmers who have to buy feed, but it also means higher grocery prices for everyone else.

"This will definitely mean higher food prices," said Brian Choi, head of the Food Institute. Corn prices are up nearly 20 percent this year. Eventually, that cost works its way to the checkout line.

The Trump administration requested $11 billion in emergency farm aid in June — but farming groups say it falls short of what's actually needed. Last week, the administration also waived tariffs on 300,000 tons of beef imports, a move that outraged cattle ranchers who saw it as a direct hit to their livelihoods.

Trump has promised farmers he won't let them down. But with midterm elections 71 days away, even some Republicans are struggling to find good news to bring back to farm country.

"We don't have a positive message to sell farm country," said Republican Sen. Thom Tillis, "and we haven't since 'liberation day' last year."

For farmers like Matt Bailey in eastern Nebraska, the math doesn't work anymore.

"Where do you start with that?" he said of the fertilizer prices. "How do you budget for that?"