Cape Fear farmers struggle as Iran conflict drives up fertilizer and oil prices
COLUMBUS COUNTY, NC (WWAY-TV) — As conflict in Iran continues to disrupt vital trade routes, many farmers in the Cape Fear are facing challenges in rising production costs.
“Farmers can’t keep going like this,” said Lydia Miles, North Carolina Cooperative Extension field crop agent.
Since last year, farmers in the Cape Fear have faced an onslaught of challenges.
“The cost of production is way higher than people think of what it cost to produce a crop,” said Don Rawls,
Rawls, a fourth-generation soybean farmer spoke with WWAY in December when President Trump rolled out a $12 million aid package for farmers to ease the financial burden of a trade war with China.
Since, farmers have still faced a reduction in exports in now, they face impact from the conflict in Iran that shutdown the Strait of Hormuz.
“I just added to a situation that was already kind of struggling,” said Miles.
Miles said many farmers rely on the nitrogen fertilizer that comes through the Strait.
“Corn is a very heavy nitrogen feeder. It requires quite a bit to produce a really good, well-yielding crop,” said Miles.
Since the Strait’s closure, costs for this fertilizer has risen 30%.
Major crops like corn, wheat, rice, onions and leafy vegetables rely on this type of fertilizer ahead of planting season. Miles said farmers are having to rethink what they plant this spring such as more soybeans, which don’t require nitrogen fertilizer.
“But you have to rotate crops. You can’t put all your eggs in one basket. You can’t just grow soybeans,” said Miles.
Alongside fertilizer, it takes fuels to run a farm, which is also putting farmers on edge with rising costs.
“Those big tractors and planters and combines all use quite a good amount of diesel. So it’s just another hit,” said Miles.
As for grocery shoppers, Miles said the impact on shelf prices on these crops won’t be immediate.
“Farmers can’t just say, well, it costs me a lot more to make it. You have to pay me a lot more to purchase it. But at some point, there’s got to be a shift somewhere,” said Miles.
