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Purdue economist: Geopolitical tensions igniting long-term concerns about fertilizer prices

An ag economist at Purdue University says the continued conflict in Iran is causing concerns about rising fertilizer prices.

Joana Colussi says input costs have risen more than 30 percent since the end of February.

“Once prices go up, it’s very difficult for them to come back down quickly,” she says. “We could see some availability impacts in the near-term during the current crop season and even more next year.”

USDA’s Deputy Secretary Stephen Vaden recently told Brownfield the department is working with the Federal Trade Commission and the Department of Justice to find short and long-term solutions to recent fertilizer price hikes.

Colussi says the U.S. is working to build out its domestic fertilizer production, but it will take time.

“It would reduce the risk of geopolitical disruptions and provide more stability in input costs for farmers,” she says.

Colussi says the longer the conflict goes, it could run the risk for fertilizer prices to remain elevated into the 2027 growing season.

AUDIO: Joana Colussi, Purdue University