<p>Tennessee farmer <strong>Todd Littleton</strong> said fertilizer, diesel, and natural gas prices have risen sharply as he prepares to plant corn, wheat, and soybeans on 4,000 acres. The increase adds roughly $100,000 to his planting costs.</p>



<p>&#34;All of these cost increases could not have come at a worse time for the agricultural industry,&#34; he told MarketWatch.</p>



<h2><strong>Fertilizer Costs Surge</strong></h2>



<p>Nitrogen fertilizer, essential for crop growth, is particularly affected. About one-third of global nitrogen trade passes through the Strait of Hormuz, where U.S. and Israeli strikes have disrupted shipments.</p>



<p>Urea prices at the New Orleans import hub jumped nearly 44%, from $475 to $683 per metric ton.</p>



<h2><strong>Energy Prices Add Pressure</strong></h2>



<p>Brent crude futures reached nearly $112 per barrel, and the U.S. gas average stood at $3.88 per gallon. Analysts estimate households could spend $740 more on gasoline this year, potentially offsetting per-household tax refunds under the Trump administration's Big, Beautiful Bill Act. Non-drivers and electric vehicle owners are largely insulated from the increase.</p>



<h2><strong>Grocery Prices Set To Rise</strong></h2>



<p>Higher fuel and fertilizer costs are expected to push up prices for coffee, chocolate, meat, berries, and seafood. Off-season produce and imported seafood are particularly vulnerable to rising transportation costs. Experts warn that fertilizer disruptions combined with energy price volatility could feed into higher U.S. food prices throughout 2026, affecting household budgets and farm margins.</p>



<h2><strong>Global Supply Chain Risks</strong></h2>



<p>Shipping delays, rising input costs, and limited fertilizer availability could also impact international markets. Spring planting schedules in the Northern Hemisphere leave little time to adjust, making timely deliveries critical to crop yields in regions such as South Asia and Latin America.</p>



<p><em>Disclaimer: This content was produced with the help of AI tools and reviewed by Benzinga editors.</em></p>



<p><em>Photo: Below the Sky on Shutterstock.com</em></p>

CORN

<p>Tennessee farmer Todd Littleton faces significant increases in fertilizer, diesel, and gas prices, adding approximately $100,000 to his planting costs for 4,000 acres. Fertilizer prices, especially nitrogen, have surged due to disruptions in the Strait of Hormuz, with urea prices rising nearly 44%. Rising energy costs, including Brent crude at nearly $112 per barrel, are expected to lead to higher grocery prices for various food items. Experts warn that these disruptions could affect U.S. food prices through 2026, impacting household budgets and farm margins.</p>

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Fertilizer Crunch, Not Just Oil, Threatens Higher Grocery Bills As Hormuz Tensions Drag On: Report