Local farmers see surge in fertilizer costs due to War in Iran

COACHELLA, Calif. (KESQ) - Shipping disruptions along the Strait of Hormuz have led to an increase in fertilizer costs, as one third of all nitrogen-rich fertilizer shipped globally goes through the Strait of Hormuz.

"Locally, the farmers seen about a 10% to 15% increase on their fertilizers, where the global markets increase 50% to 60%," says Jimi Davis, a local fertilizer supplier in Coachella.

He says one ton of urea, the organic compound in fertilizer, sold in a place like New Orleans used to cost around $500 and now it costs $800. However, farms using organic fertilizers haven't felt the pinch yet.

"A lot of farmers are buying their supplies right now. All their fertilizers, pesticides, anything they need during the season before the prices increase. But since we're a small farm here and we're organic also, we haven't had that impact yet," says Marco Giron Apeces, the operations manager at Temalpakh Farm in Coachella.

Shipping disruptions have also lead to a surge in oil and natural gas prices, which has also affected local growers. "All our tractors here use diesel. So it's a lot of money that goes into it with the diesel and gas prices going up," says Apeces.

Both Apeces and Davis say if the conflict isn't resolved soon, it could eventually trickle down to the consumer.

"I’m a little worried too, that the prices are just going to increase and then people are going to be struggling, buying groceries and feeding their families," Apeces says.