Survey: Montana farmers hit by high fertilizer, fuel costs due to Iran conflict

Almost everyone is dealing with higher fuel prices because of the war with Iran, but the conflict is also hitting Montana farmers with an extra dose of financial pain.

According to the Montana Farm Bureau Federation, a recent survey found that 58% of Treasure State farmers who responded said they can't afford all the fertilizer they need for this year’s crop.

Countries in the Middle East supply a huge portion of the world’s nitrogen-based fertilizers such as urea, and the conflict there has sent prices skyrocketing.

Conducted in early April, a national survey of farmers found that 70% of respondents say fertilizer is so expensive that they won't be able to buy the quantities they need.

“According to the American Farm Bureau’s survey, farmers in the western region have secured 31% of their fertilizer for the planting season, compared to 19% of southern producers,” said Montana Farm Bureau president Cyndi Johnson. "That’s not enough to keep you going for spring planting, and we’re not even talking about the fall season.”

Johnson, a wheat farmer in Conrad, said a “staggering” 88% of Montana farmers who responded said that their farm’s financial condition is either experiencing the same or worse than it was in 2025.

"With the value of our commodities stuck at 1980 prices and the cost of inputs escalating to record highs, we’ll have to make hard choices about what to plant, how much to plant or whether we just sit this spring out,” she said. "The results of this survey tell me we aren’t alone in Montana, and the rest of the nation is feeling the same pinch.”

About 5,700 farmers across the country, both members and non-members of the federation, responded to the survey.

The federation put out a report laying out the problem.

"The conflict in the Middle East sent fertilizer and fuel prices soaring,” the report said. "The closure of the Strait of Hormuz is keeping critical fertilizer supplies and crude oil from reaching global markets, putting a squeeze on supplies around the world.”

Now, many of the farmers surveyed said they’ll forgo applying fertilizer this spring in the hopes that prices will return to an affordable level later in the growing season.

“Spring planting decisions depend heavily on access to fertilizer and diesel fuel, both of which have been impacted by geopolitical risks that have disrupted global markets,” the report states. “Since the escalation of tensions in the Middle East, nitrogen fertilizer prices have risen more than 30%, while combined fuel and fertilizer costs have increased roughly 20% to 40%. Urea prices have increased by 47% since the end of February, marking the largest month-to-month percentage increase in the price of urea. These increases are occurring when many producers were already facing tight margins for many consecutive years.”

As for the Missoula city budget, it appears a not-so-snowy winter was beneficial.

According to Patrick De Haan, the head of petroleum analysis at the price-tracking website GasBuddy, average gasoline prices in Montana are 77 cents higher than a year ago and almost 24 cents higher than a month ago.

One would think that would cause a big hit to the Missoula city coffers.

But so far, the high gas prices haven’t had a huge impact on the budget for the City of Missoula’s public works department.

Brian Hensel, the deputy public works director for the city, said that the mild winter saved the city a bunch of money on de-icer and on fuel because they didn’t need plow trucks out very often. Also, a drop in the price of asphalt has saved the city money.

So far, they’ve used 45% of their annual budget and they are 75% through the budget year, so they’re in good shape.

Hensel said the city has been through high gas prices before, including in 2022.

“We’ll be fine unless it goes on for months and months or for years, but I hope that won’t happen,” Hensel said.

A spokesperson for the Missoula County government also said the gas prices haven’t been very impactful on the budget of any department.