U.S. Senator Chuck Grassley is concerned the conflict in the Middle East will drive up fertilizer and fuel costs for farmers.
During his weekly call with ag reporters Wednesday, the Iowa Republican said a large percentage of urea used for corn production comes through the Strait of Hormuz.
“And I think it’s already driven up the price, right now that’s the only one I can attach (with Iran). I suppose diesel for our farm tractors.”
He tells Brownfield that’s likely since prices at the pump are rising.
“Gas went up 11 cents (Tuesday). I didn’t follow diesel yesterday, but that could be a big increase in the cost for farming.”
Urea prices for barges in New Orleans have reportedly climbed from $475 per ton a week ago to $550 per ton Monday.
