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Farmers Face Growing Input Costs and Market Risk

Farmers Face Growing Input Costs and Market Risk
Apr 21, 2026
By Farms.com

Rising energy and fertilizer costs raise risks for farmers and food security

Growing tensions in the Middle East are creating serious challenges for global agriculture. Disruptions in key energy and fertilizer supply routes are increasing costs for farmers and raising concerns about future food production. 

One major concern is the Strait of Hormuz, a vital route for transporting oil, gas, and fertilizers. When shipping through this corridor is affected, energy prices rise, fertilizer supplies tighten, and transportation costs increase. These changes are already making farming more expensive. 

Farmers across the world are facing higher prices for fuel, fertilizers, and logistics. At the same time, crop prices have not increased enough to cover these extra costs. This situation is reducing farm profits and limiting farmers’ ability to invest in their fields. 

Uncertainty is forcing many farmers to reduce fertilizer use or delay important production decisions. While these adjustments may seem small, they can lead to lower crop yields in future seasons. Reduced production can increase food shortages and price volatility, especially in countries that depend on food imports. 

The impact is particularly severe in parts of Africa and Asia, where farmers rely heavily on imported fertilizers and fuel. Urban populations in these regions are especially vulnerable to rising food prices. Export-focused farming regions are also affected, as higher costs reduce competitiveness and production capacity. 

“Farmers are already being forced to adjust how they produce in response to rising energy and fertilizer costs and growing uncertainty,” said Arnold Puech d’Alissac, President of the World Farmers’ Organization. “When inputs become unpredictable, production is at risk — and so is global food security.” 

The World Farmers’ Organization has called for urgent global action. Key priorities include ensuring affordable access to fertilizers and energy, increasing market transparency, and providing targeted financial support to farmers. 

Long-term solutions are also essential. These include strengthening regional production systems, promoting sustainable fertilizer alternatives, and increasing the use of renewable energy in agriculture. 

Stable farming conditions are critical for food security. Without predictable input markets, farmers cannot plan or produce reliably, placing global food systems at risk. 

Photo Credit: gettyimages-fotokostic


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