Oregon farmers feel the pinch as fertilizer prices soar amid Iran conflict

(UPDATE: Adding Story and video)

BEND, Ore. (KTVZ) -- Fertilizer prices are increasing and its availability is decreasing in Central Oregon, impacting local farmers. This issue is linked to disruptions in the global supply chain through the Strait of Hormuz, exacerbated by the Iran war.

U.S. Sen. Jeff Merkley (D-OR) stated that the rise in fertilizer prices is due to its transport through the Strait of Hormuz, equating the situation to the impact on gas prices. Sen. Merkley explained that global fertilizer producers sell their product on the world market.

Fertilizer is composed of nitrogen, phosphorus and potassium, with many Middle Eastern countries like Saudi Arabia, Oman and Egypt serving as major sources of nitrogen.

The disruption in the Strait of Hormuz has led to ships becoming stuck, further intensifying the shortage of fertilizer on the market. This global issue has exacerbated existing challenges in Central Oregon. Central Oregon has experienced a significant reduction in its fertilizer production capacity in recent years. The number of main fertilizer producers in the region has decreased from four to two, contributing to an even greater local shortage.

Hay farmers in the region are also facing economic difficulties. Over the last several years, hay prices have declined, making its production less profitable. According to a market report from Ag-West Farming Credit, hay is currently only somewhat profitable.

I spoke with several farmers and ranchers who chose to remain anonymous. Some expressed the struggle they are enduring, with one farmer stating they were glad they did not purchase fertilizer this year. Another indicated that the profitability of farming has become increasingly difficult.