Farmers Struggle with Rising Fertilizer Costs Under New Tariffs

By Andi Anderson

Farmers across the United States are feeling the pressure of rising fertilizer and pesticide costs as new tariffs reshape the agriculture sector.

Fertilizer is a major expense, accounting for more than 30 percent of row crop farmers’ input costs, and the increases are forcing growers to make difficult choices about planting.

Reports indicate that farm organizations have grown increasingly concerned about the impact of tariffs on production. According to Politico Pro, the National Corn Growers Association and 25 state groups sent letters to top federal officials urging action.

They warned that fertilizer prices are “approaching disastrous levels” and combined with low commodity prices, are creating a “calamitous environment” for producers.

University of Illinois expert Gary Schnitkey echoed these concerns, noting that nitrogen fertilizer is now 10 to 15 percent higher than last year, with little improvement in crop prices. He suggested that some farmers may cut back on fertilizer budgets or shift acres from corn to soybeans if demand improves.

Tariff hikes have also hit other agricultural inputs hard. According to Agri-Pulse, tariffs on herbicides, insecticides, and other pesticides have climbed to 20 percent or more, while tractors and farm machinery face duties as high as 16 percent. Phosphate and nitrogen fertilizers, once tariff-free, now carry average rates of around 10 percent.

Experts say the full effects of these changes are still unfolding. While consumer food prices have not yet surged, higher input costs could eventually pass through the supply chain.

Some relief has come through exemptions. Imports under the U.S.-Mexico-Canada Agreement remain largely protected, insulating many agri-food imports. The U.S. continues to rely heavily on Canadian and Mexican products, while tariffs on European foods like wine and cheese are capped at 15 percent.

Still, for many American farmers, the combination of low grain prices, uncertain trade conditions, and escalating input costs makes the outlook challenging. Farm groups warn that unless relief comes, the financial squeeze could significantly alter planting decisions in the years ahead.

Photo Credit: gettyimages-alexeyrumyantsev