Steep spike in fertilizer prices affecting Arkansas farmer's bottom lines

The war in the Middle East is causing more economic problems for Arkansas farmers, who are already struggling to stay afloat.

The conflict has driven up fertilizer prices, and a survey by the American Farm Bureau Federation shows growers in the southern region are having trouble affording it for the spring planting season.

University of Arkansas Assistant Professor and Extension Economist Ryan Loy said that to be profitable, farmers may have to adjust their normal practices.

"Perhaps they dial back some of their farm," said Loy. "Perhaps they diversify into other things. Especially in Arkansas Delta, there's a lot of specialty crop growing. But again, it's gonna be more of money management, trying to break even, and improving your crop and commodity marketing."

The Middle East is a major supplier of fertilizer used by American farmers. The products are imported into the U.S. through the Strait of Hormuz.

The report shows that only 12% of Arkansas farmers who answered the survey reported pre-purchasing their fertilizer, and they bought it in March of this year after prices started spiking.

According to the survey, farmers who can’t afford to purchase fertilizer or choose not to will likely see their yield potential affected, which will affect their bottom line.

Loy said while row crop farmers are experiencing difficulties, the state’s other Ag businesses are doing well.

"It's so diversified in the amount of things that we grow, and then we have livestock, poultry, specialty crop growing, row crops, fisheries," said Loy. "And so when we look at that as the whole, you know, one sector of that right now is-- has been going through the tough times."

The agriculture industry contributes more than $24 billion to the Arkansas economy each year.

Source: Public News Service

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