Global Conflict and Fertilizer Supply Chains: An American Opportunity
Global Conflict and Fertilizer Supply Chains An American Opportunity Global events are once again reminding us how fragile our agricultural system can be. The conflict involving Iran and instability around the Strait of Hormuz has created major supply chain issues around the world, and agricultural products are no exception. Fertilizer, fuel, and key inputs move through that region. Farmers are unsure about whether or not they can afford fertilizers, and companies are questioning procurement at current prices. When this situation gets resolved, these issues aren't going to simply be fixed overnight. Supply chain issues are slow to resolve, and often leave behind lingering market impacts. We’re already seeing pressure on margins, and have been for several years. Purdue’s 2026 crop budgets showed negative returns across major commodities under earlier assumptions. Markets have improved some since then, especially soybeans. However, we have to account for: 1) China's decreasi...
