European farmers cut crops as Iran war disrupts fertilizer supply
Farmers across Europe are scaling back production as the war in Iran disrupts global energy and fertilizer supply chains, driving up costs during a critical planting season. Producers in Finland, Bulgaria, and across Ireland report mounting financial strain, with protests over fuel prices spreading as input costs surge.
In Finland, a survey by major agricultural groups SLC and MTK found that nearly one in five farms plans to reduce output this season, while about two thirds expect to cut fertilizer use. The findings, reported by Yle, point to a significant contraction in production capacity. Industry leaders estimate the crisis could cost the Finnish agricultural sector at least 200 million euros in lost revenue, raising concerns about long-term food security and supply resilience.
The shock is closely tied to disruptions in the Strait of Hormuz, a key route for global fertilizer and energy trade. Roughly one third of seaborne fertilizer and one fifth of global oil normally pass through the corridor. Prices for urea, a widely used nitrogen fertilizer, have surged sharply. Benchmark prices in Egypt climbed from around 400 dollars per tonne before the conflict to nearly 700 dollars, reflecting tightening supply and higher transport costs.
In Bulgaria, farmers report fertilizer costs rising by 35 to 40 percent, pushing the sector into a liquidity crisis. Agricultural groups have warned of possible protests, arguing that government support measures are insufficient. Labor leaders also expect inflation to exceed forecasts, even if fuel prices stabilize, as higher input costs feed into the broader economy.
Similar pressures are emerging in the United States. Soybean farmers in the Midwest are facing losses of about 75 dollars per acre despite federal support, as higher fuel and fertilizer costs compound already weak prices caused by global oversupply and trade tensions with China. Farmers report difficulty securing fertilizers at elevated prices, raising the risk of reduced yields in upcoming harvests.
The combined impact of rising input costs and supply disruptions is forcing farmers to adjust planting decisions across multiple regions. Analysts warn that if the conflict persists, reduced fertilizer use could lower agricultural output and tighten global food supply in the months ahead.
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