The Timing of the Iran War Couldn’t be Worse for Texas Farmers… and Your Food
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The timing of the Iran war couldn't be worse for Texas farmers, who are facing a perfect storm of skyrocketing input costs—especially for diesel and nitrogen fertilizer—just as they're entering peak planting season. James Foster, a third-generation farmer and Texas Farm Bureau board member, reveals that fertilizer prices have surged over 30% since the conflict began, forcing him to spend an extra $15,000 on a single application for his 1,100-acre corn crop. With only 19% of Southern farmers having pre-booked fertilizer, most are now at the mercy of volatile global markets. The situation is exacerbated by the fact that 94% of farmers report their financial situation has worsened or stayed the same, and an accountant shared that six of his clients are already in default—echoing the farm crisis of the 1980s. Despite being price takers, farmers receive less than six cents of every dollar spent on food, while the cost of production has skyrocketed. The crisis extends beyond agriculture: a new threat from the New World screwworm fly, which can burrow into living tissue and has already caused 3,000 human cases in Mexico, is now just 60 miles from Texas, threatening a $30 billion beef industry and potentially disrupting food supply chains. Yet, despite the strain, farmers remain resilient—driven by passion, national security concerns, and the belief that help will come, possibly in the form of another $10–13 billion bailout.
Fertilizer prices have risen over 30% since the Iran war began, forcing Texas farmers to pay $15,000 extra for a single corn crop application.
Only 19% of Southern farmers pre-booked fertilizer, leaving 81% vulnerable to price spikes during peak planting season.
Farmers receive less than six cents of every dollar spent on food, making them price takers in a system where input costs have surged while commodity prices remain stagnant.
The New World screwworm fly, capable of burrowing into living tissue and reaching the brain in 48–72 hours, is now within 60 miles of Texas, threatening livestock, wildlife, and human health.
A $13 billion bailout for farmers is expected due to the Iran war and tariff fallout, with the Trump administration planning to use tariff revenue to fund fertilizer infrastructure.
…and 3 more takeaways available in PodZeus
The Hidden Cost of Food: Less Than 6 Cents to the Farmer
The episode opens with a startling statistic: less than six cents of every dollar spent on food goes to the actual farmer. Host Jason Wheeler sets the stage by highlighting the disconnect between input costs and market prices, introducing the central theme of the episode—how global events like the Iran war are devastating American farmers.
Meet James Foster: A Farmer Facing $15,000 Extra Fertilizer Costs
“If you hadn't put that extra $15,000 into this shot of fertilizer recently for your corn, what happens to that corn? The corn would just not be very productive. You know, a lot smaller and it wouldn't make hardly any grain at all. Okay, so... It wouldn't be worth doing.”
The Global Supply Chain Trap: Why Fertilizer Prices Are Soaring
The episode dives into the global supply chain mechanics behind fertilizer. With 20% of U.S. fertilizer coming through the Strait of Hormuz, the war has blocked shipments. Natural gas, a key ingredient in nitrogen fertilizer, is also tied to Middle East markets. The result? A 30%+ price spike and a crisis of availability.
The 81% Trap: Why Most Southern Farmers Couldn’t Pre-Book Fertilizer
“We read that and so 81%, most farmers down this way got caught and were like, uh oh, now I've got to go down to this place where they've got the fertilizer and I'm at their mercy and they're running into that.”
The 1980s Farm Crisis Is Repeating Itself—But With Higher Land Prices
“He said that is unheard of. In a way it's similar to the 80s. He was in business in the 80s when interest rates were so high and farm foreclosures were at an all-time high, and that's when the farmers drove their tractors to DC, was in the 80s you know to protest.”
“When the larva hatches out, it keeps burring itself deeper and deeper and deeper. So within a matter of hours, 48 to 72 hours, they can be in your brain. It's like out of a horror movie. This is bad stuff.”
“There's probably another tranche of bridge payments out of the tariffs. They're taking several big... $10 BILLION OF THE TARIFS AND SPEND IT ON INFRASTRUCTURE FOR FERTILIZERS. WE CAN MAKE OUR OWN FERTILIZER. THAT'S GOING INTO THE WORKS THIS WEEK.”
“you hadn't put that extra $15 ,000 into this shot of fertilizer recently for your corn, what happens to that corn? The corn would just not be very productive. you know, a lot smaller and it wouldn't make hardly any grain at all. Okay, so... It wouldn't be worth doing.”
Host
Guests
sid miller
person
new world screwworm
other
james foster
person
trump administration
organization
texas farm bureau
organization
strait of hormuz
other
brook rollins
person
ivermectin
product
g20 summit
organization
dectomax
product
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