An overwhelming majority of America’s farmers who responded to a nationwide survey say they cannot afford to purchase enough fertilizer to get them through the year. The percentage who pre-purchased fertilizer varies significantly by region.

Conducted by the American Farm Bureau Federation (AFBF) April 3-11, the survey shows 70% of respondents say fertilizer is so expensive that they will not be able to buy all the fertilizer they need.

More than 5,700 farmers, both Farm Bureau members and non-members, from every state and Puerto Rico took the survey. Approximately 14 farmers from Arizona took the survey as well. Farm Bureau economists analyzed the results in the latest Market Intel.

The analysis reveals that farmers in the western U.S. are facing particularly severe challenges, with 66% saying they can’t afford all the fertilizer they need this year. This figure is significantly higher than the 48% reported in the Midwest, though slightly below the 69% in the Northeast and nearly 80% in the South.

“The survey demonstrates that here in Arizona and beyond the borders of our state, the price of skyrocketing inputs, as well as many other pressures facing farmers in the U.S., is untenable” said Arizona Farm Bureau President and Yuma farmer John Boelts. “This situation highlights what America’s agriculture producers know that we can produce food for our nation, but we need to lower the cost of regulation and lower the cost of inputs to be able to stay in business to do so. This comes on the heels of 30 years of labor costs going up and up, and Congress limiting labor supplies for America’s farmers, and inflation that has hit farmers and ranchers in many areas. For example, equipment costs are over 300% compared to two decades ago. We certainly appreciate the fertilizer retailers and distributors who have helped hold the line on prices, but they will need to refill their supplies soon as well.”

Pre-booking rates in the West remain low, with only 31% of Western farmers securing fertilizer purchases in advance of planting season. This is far below the 67% in the Midwest and closer to the struggling rates seen in the South (19%) and Northeast (30%). Even with higher pre-booking in other areas, many producers across the country, including in the West, enter the season short on supplies.

The conflict in the Middle East sent fertilizer and fuel prices soaring. The closure of the Strait of Hormuz is keeping critical fertilizer supplies and crude oil from reaching global markets, putting a squeeze on supplies around the world.

Added Boelts, “This situation also highlights that we have not been doing enough to produce affordable fertilizer right here in the U.S. for our farmers.”

“Spring planting decisions depend heavily on access to fertilizer and diesel fuel, both of which have been impacted by geopolitical risks that have disrupted global markets,” the Market Intel states. “Since the escalation of tensions in the Middle East, nitrogen fertilizer prices have risen more than 30%, while combined fuel and fertilizer costs have increased roughly 20% to 40%. Urea prices have increased by 47% since the end of February, marking the largest month-to-month percentage increase in the price of urea. These increases are occurring when many producers were already facing tight margins for many consecutive years.”

Many of the farmers surveyed said they will forego applying fertilizer this spring in hopes that prices will return to an affordable level later in the growing season.

“The biggest impact has been on urea fertilizer, which is a granular and regularly used in grain crops and for Bermuda grass,” explained Pinal County Farm Bureau member and farmer Paco Ollerton. “Currently, that’s not that big of a concern to me, but if it gets higher, I think I’ll go back to watching it more closely before applying it. Fuel is my biggest concern right now since it’s around $5.79 a gallon for diesel at the pump. It’s not much cheaper at the farm gate.”

Ollerton added, “All input costs have been an issue for the last 2 to 5 years, to be honest. I don’t know how much more streamlined we can get to save on fuel and fertilizer. Farmers in the West have always been conservative and careful with our costs for quite some time.”

Arizona farmer respondents said input costs were too high and would either forgo fertilizer purchases or reduce acres planted.

AFBF President Zippy Duvall said, “The skyrocketing cost of fuel and fertilizer is creating more economic hardships for farmers who have already endured years of losses. Without the necessary fertilizers, we’ll face lower yields, and some farmers will reduce acres altogether, which will impact food and feed supplies. It’s too early to know how this will affect food availability and prices in the long run, but it’s a warning light that we’ve shared with leaders in Washington. We look forward to working with them to find solutions so farmers can continue to feed families across America.”

According to the survey, 94% of respondents reported their financial situation has worsened or remained the same since last year, while only 6% reported improvement.

Get more survey results and read the full Market Intel here.