OMAHA (DTN) -- A new survey by the American Farm Bureau Federation (AFBF) paints a bleak picture of rising input costs adversely affecting U.S. farmers.

Both fertilizer and diesel fuel have skyrocketed higher since the escalation of the tensions in the Middle East. Nitrogen prices have risen by 30% and urea is up 47% while combined fuel and fertilizer costs have increased roughly 20% to 40%, according to AFBF.

HIGH INPUT PRICES PUSH FARMERS' FINANCIALS

According to the survey, 94% of respondents reported their financial situation has worsened or remained the same since last year, while only 6% reported an improvement. Fifty-eight percent of respondents said they were in a worse financial condition while 36% said they were in the same financial situation as last year.

Faith Parum, economist at AFBF, said in a Zoom call with reporters Tuesday morning, there has been a lot of discussion about how much fertilizer farmers preordered before the war with Iran.

In the AFBF survey, there were large differences between regions and even among crops grown by farmers who had already bought fertilizer. Midwest corn and soybean producers preordered fertilizer at higher rates than Southern farmers who grew cotton and rice.

In the Midwest region, 67% of the respondents said they had already bought fertilizer. Even with higher prebooking rates, nearly one in three Midwestern farmers still reported entering the season without securing all their fertilizer needs.

Producers in other regions are more likely to purchase fertilizer closer to application. Nineteen percent of Southern farmers prebooked fertilizer for their crop this year, western farmers responded with 31% and the Northeast region saw 30% of respondents having already bought nutrients.

Fertilizer affordability is seen in all regions, with more acute challenges in the South and Northeast regions. Around 70% of respondents report being unable to afford all the fertilizer they need, according to AFBF survey.

"It certainly paints a very bleak picture for farmers in 2026," Parum said.

DUVALL: FARMERS ARE IN NO-WIN SITUATION

Zippy Duvall, president of AFBF, said farmers are in a no-win situation when it comes to increasing input prices -- specifically fertilizer prices.

Many producers are going to have to shift crops or cut fertilizer application rates. He will be cutting back fertilizer applications on his Georgia farm he operates with his son.

"Farmers right now are facing generational headwinds," Duvall said. "The farm outlook is bleak right now and farm country needs help."

Lorenda Overman, a Wayne County, North Carolina, farmer, spoke during the online press conference. She said farmers are used to battling the weather or pests but for the last three years they have been battling considerably higher input costs.

Their farming operation did not preorder any fertilizer before the most recent increase because they did not have funds to purchase nutrients, she said.

Overman said fertilizer costs for the corn crop on their farm were $139/acre last year. This growing season, the cost will be estimated $217/acre.

"Farming is about pivoting so we will raise less corn acres and more soybean acres," Overman said. "We also will spread our fertilizer thinner (to apply less)."

Tommy Salisbury, who is a Tulsa County, Oklahoma, farmer, also spoke and he said his region of the state is in a drought and he didn't know how much of his wheat crop would survive the dry growing conditions. Because of this, he did not preorder any fertilizer.

He figures his urea applications for his crop probably are about $150/ton more expensive now with the rise in nutrient prices. Because of this, he will raise less milo acres and more soybean acres on his farm.

"It is just so disheartening with these higher fertilizer prices, especially right before spring planting," Salisbury said.

Salisbury said he was very grateful to receive the government bridge payment earlier this year. However, these higher input prices have pretty much eaten it all up, he said.

The AFBF survey included 5,700 responses from farmers from every state and Puerto Rico. The survey was conducted for nine days in early April, according to AFBF.

To read the entire AFBF report on the survey, click on the link: https://www.fb.org/….

Russ Quinn can be reached at Russ.Quinn@dtn.com

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