Rising Fertilizer Prices Could Impact New York Farmers and Schenectady Businesses

Global tensions affecting the Strait of Hormuz are beginning to impact agriculture in the United States, including farmers in New York State. About one-third of the world’s seaborne fertilizer moves through this shipping route, and Persian Gulf countries export nearly half of the world’s urea and 30 percent of its ammonia, both key nutrients used in farming. Concerns about disruptions have already pushed fertilizer prices up about 30 percent in recent weeks.

Fertilizer is especially important for crops like corn, which requires large amounts of nutrients to grow. With prices rising, some farmers may shift acreage away from corn toward crops like soybeans, which need less fertilizer.

This is happening at a difficult time for farmers. Since 2022, corn prices have dropped nearly 50 percent and soybeans about 40 percent, while input costs like fertilizer and pesticides remain high. According to the National Corn Growers Association, many corn farmers are currently losing money on each bushel they produce.

Financial pressure is already showing across the industry. Farm bankruptcies rose to 315 filings in 2025, a 46 percent increase from 2024, according to the American Farm Bureau Federation.

For farmers across Upstate New York, including those in the Mohawk Valley and Capital Region, higher fertilizer prices could increase production costs and force difficult planting decisions. Many farms in the region grow corn and feed crops that support the dairy industry, meaning higher fertilizer costs could ripple through the broader agricultural economy.

Businesses in Schenectady could also feel indirect effects. Local restaurants, grocery stores, and farmers markets rely on regional farms for food supply. If farmers cut production or face financial strain, food prices and supply chains in the area may also be affected.

The situation highlights how global supply disruptions can quickly reach local communities, linking international trade routes to farms and businesses across New York.