US Farmers Face Worst Crisis In 40 Years Amid War On Iran – Reports

MOSCOW, Aug 25 (NNN-Sputnik/RIA Novosti) -- American farmers in the top four corn-producing states are facing their worst crisis in 40 years after the US war against Iran caused fuel and fertiliser prices to soar, reported Sputnik/RIA Novosti quoting a Financial Times report on Tuesday, citing industry representatives.

One major phosphorus fertiliser that cost US$470 per tonne a decade ago now costs US$900 per tonne, Nebraska farmer Matt Bailey told the newspaper. Many farmers are yet to recover from losses they suffered in recent years due to low grain purchase prices.

The average diesel price has risen from US$3.81 per gallon to US$5.45 per gallon since the start of the operation against Iran, according to the US Energy Information Administration.

Without government support, losses for farms growing nine major grain crops will reach US$31 billion in 2026 and US$32 billion in 2027, the American Farm Bureau Federation estimated. Federation expert Faith Parum told the daily that next year will be the sixth consecutive year of losses for farmers.

This will inevitably lead to higher food prices, Brian Choi from the Food Institute told the Financial Times.

On February 28, the United States and Israel began striking targets in Iran, to which Iranians retaliated with strikes of their own. In mid-June, Tehran and Washington signed a memorandum of understanding aimed at a cessation of hostilities, but shortly afterward, they exchanged strikes again.

The conflict remains unresolved with no active hostilities. However, the US has chosen to increase its economic pressure against the Islamic Republic in a push to end the conflict through the creation of financial hardships for Tehran.

--NNN-SPUTNIK/RIA NOVOSTI