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War with Iran disrupts fertilizer exports as U.S. farmers prepare for planting season

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War with Iran disrupts fertilizer exports as U.S. farmers prepare for planting season

Matt Ubel, standing on his farm near Wheaton, Kansas, motions to the fertilizer spreader he’ll use to spread urea fertilizer this spring.

Frank Morris


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Frank Morris

Spring planting season is starting across the northern hemisphere. But before seeds go into the ground, nutrients go into the soil. Typically nitrogen fertilizer.

“Right now, we’re kind of … we’ll be in the thick of it,” farmer Matt Ubel said from the cab of his huge green fertilizer spreader near Wheaton, Kansas. “Lot of nitrogen gets put on in the spring.”

The high cost of fertilizer and other farming necessities pushed many row crop farmers into the red last year. Ubel says some were holding out for lower prices this spring, only to see the price of the most common nitrogen fertilizer, urea, spike close to 30% when Iran shut down shipping in the Strait of Hormuz, halting close to half the world’s fertilizer trade.

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“This probably threw some guys for a loop,” said Ubel.

The Persian Gulf, nitrogen fertilizer hub of the world

Farmers in rural Kansas, and across the world, are feeling the unexpected consequences of the war in the Persian Gulf because closing the Strait of Hormuz has bottled up almost 50% of the world’s urea exports.

Every plant needs nitrogen to grow. The best source of nitrogen is natural gas, and the Gulf states are sitting on the world’s largest gas reserve.

“If you had sat us down before and said, ‘Hey, I want you to think of the nightmare scenario for fertilizer. What would it be?’ It would be this exact event during this exact time of year,” said Josh Linville, who oversees the global fertilizer department at the brokerage firm StoneX.

Linville says urea that had been expected to arrive in the United States next month, in the peak of planting season, won’t come.

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The Fertilizer Institute predicts that U.S. farmers will be short some 2,000,000 tons of urea this spring.

The United States is currently the world’s top natural gas producer, which supports a robust domestic fertilizer industry. Still, U.S. companies import about 18% of the nitrogen fertilizer sold in this country, drawing heavily on imports to cover the spring planting surge.

Other countries are much more dependent on petrochemical imports. Liquefied Natural Gas imports from the Persian Gulf fuel urea production in some of the top-producing countries. Or it did.

“Countries like India, the second biggest urea producer in the world, their production rates are starting to fall. Pakistan, China, all of these major producing countries are struggling to get these gas supplies,” says Linville. “And all of a sudden, they’re having to say, well, we’ve only got so much. We need to lower our fertilizer production to put into some of these other industries.”

And natural gas isn’t the only problem. About half the world’s sulfur exports were shipped out of the Strait of Hormuz.

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For instance, sulfur is an important plant nutrient on its own, but it’s also a critical ingredient in phosphate fertilizer.

“We do produce a lot of phosphate fertilizers here in the U.S., but if we can’t get sulfur, we can’t produce phosphate fertilizers,” said Veronica Nigh, chief economist at the Fertilizer Institute. “And so, it’s kind of a twofer there.”

No easy answers

Federal lawmakers are trying to help.. Bipartisan Senate legislation aims to lower fertilizer costs by requiring more transparent pricing.

The Trump Administration is lifting barriers to fertilizer imports from Venezuela and Morocco.

“They’re trying to pull a number of levers,” said Nigh. “I think that it’s the acknowledgement that there aren’t a lot of easy answers to this problem.”

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There’s very little slack in the fertilizer supply chain. The product doesn’t store well, some of it is prone to blowing up, some if it gets clumpy and hard to use with the slightest moisture. According to Nigh, fertilizer plants tend to operate at capacity and take years to construct. Iran was a top urea producer and exporter before the war. It’s unclear when or if that capacity will come back online.

The gas fields in Iran and Qatar are the world’s largest natural gas reserves. They supplied fertilizer production in India, normally the world’s second-largest nitrogen fertilizer producer. But, those fields have been severely damaged in the war.

Even after the Strait of Hormuz reopens, it will likely take months to straighten out the fertilizer supply chain.

“How long does it take until we get back to normal? It could be a while,” Nigh said.

Meantime, American farmers may have to make hard choices at planting time. Corn, for instance, needs a lot of nitrogen to thrive. Soybeans need less, so U.S. farmers may grow less corn and more soybeans. Farmers who can’t source fertilizer may even skip a year.

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“Think watermelons and cantaloupe and things along those lines in Texas, those don’t get planted,” said Nigh, “Or pumpkins in Indiana.”

On the one hand, less fertilizer use could be good for the environment. Fertilizer runoff pollutes water sources and fuels toxic algae blooms.

But the fertilizer shock triggered by the attack on Iran will invariably mean that people around the world have less to eat. And that could be an acute problem in vulnerable countries, especially those dependent on Persian Gulf oil for fertilizer.

“What our product is used for, is food, is the production of food,” Nigh said. “So the consequences aren’t going to be immediate, but they could be substantial.

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Crowds ordered to evacuate National Mall area as stormy weather slams DC

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Crowds ordered to evacuate National Mall area as stormy weather slams DC

The thousands of people attending the Great American State Fair and other areas around the National Mall are being ordered to evacuate as stormy weather approaches.

The National Weather Service previously announced a Severe Thunderstorm Warning in the District. Officials are asking attendees to seek shelter.

SEE ALSO: Historic Fourth of July fireworks to light up National Mall: How to watch live

The DC Homeland Security & Emergency Management released a list of places where the crowds can go to get out of the weather:

Federal Buildings:

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  • Ronald Reagan Building – 100 Pennsylvania Ave NW
  • Dept. of Commerce – 1401 Constitution Ave NW
  • Dept. of Agriculture – 1400 Independence Dr SW
  • Dept. of Education – 400 Maryland Ave SW
  • Internal Revenue Service – 1111 Constitution Ave NW
  • Voice of America – 330 Independence Ave SW
  • Thomas Jefferson Memorial – 16 E Basin Dr SW

Museums:

  • National Museum of American History – 1300 Constitution Ave NW
  • National Museum of Natural History – 1000 Constitution Ave NW
  • National Museum of African American History and Culture – 1400 Constitution Ave NW

Freedom 250 organizers released this statement:

“The safety of our guests, performers, and staff is our top priority. Due to approaching severe storms, Freedom 250, United States Secret Service, United States Park Police, National Park Service, the Federal Emergency Management Agency, and all public safety partners are asking all guests to evacuate event grounds and seek temporary shelter in a nearby building. Available shelter locations include the Department of Commerce, Department of Education, Department of Agriculture, Internal Revenue Service, VOA Building, Thomas Jefferson Memorial, National Museum of American History, National Museum of Natural History, the African American Museum, and the Ronald Reagan Building. Please remain calm, follow the directions of law enforcement and event staff, and stay tuned to Freedom 250’s official channels for updates. Freedom 250 will share updates on programming and doors reopening — please stay close to our official channels for updates.”

The Secret Service said they have suspended screening on the National Mall.

“Security screening on the National Mall has been suspended due to dangerous storms,” the Secret Service said. “If you are already on the grounds, follow directions from officers and event staff and move to shelter immediately. Do not shelter under trees.”

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Metro riders are also asked to seek shelter. Commuters should expect heavy crowds at stations near the National Mall and are asked to consider using L’Enfant Plaza, Metro Center, Archives, Federal Triangle or Federal Center SW stations to avoid congestion.

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Reflections on America’s 250th birthday

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Reflections on America’s 250th birthday

The nation’s capital may be the focal point of the 250th Independence Day celebration, but people all across America have plans to mark the occasion, from boisterous public parades to quiet personal reflections on history.

Julia Demaree Nikhinson/AP


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Julia Demaree Nikhinson/AP

As the United States turns 250 years old, Americans across the country are spending the holiday thinking about what the big birthday means to them, with reflections and celebrations as diverse as the nation itself.

NPR’s member station reporters fanned out to collect snapshots of the occasion from sea to shining sea.

In one ‘City of Presidents,’ Main Street is decorated for a party

At least two cities in the U.S.call themselves the “City of Presidents” and Cuba City, in Wisconsin, is one of them, largely due to its patriotic Main Street decorations. Every year from Memorial Day through Veteran’s Day, red, white, and blue shields, one for each U.S. president, are prominently displayed high up on the light poles lining Main Street.

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It’s a tradition that began in 1976 to commemorate the country’s bicentennial, says Donna Rogers, who is president of the ongoing project but admitted that when it first started, she wasn’t particularly tuned-in to the display.

“I was raising three little boys and working at John Deere, so I didn’t really pay too much attention to community service at that time,” she said.

Donna Rogers shows off one of Cuba City's presidential lampposts.

Donna Rogers shows off one of Cuba City’s presidential lampposts.

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A few years later, she was tapped to help keep the initiative alive.

When she thinks of the country’s history, she says the signing of the Declaration of Independence and abolition of slavery top her list, plus a current event–

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“Of course, now, our nation’s 250th birthday. I think those three would be the three most important things in history to me,” she said, quickly adding “[the] right for women to vote, don’t forget that, right?”

Rogers and Cuba City are pulling out all the stops for the 250th, with a parade and a mac-and-cheese festival, because “that was some of our founding fathers favorite foods, along with turkey and cranberries and other items.”

She laughed and admitted she googled that. True or not, Rogers says they’ll go all-out to celebrate the 250th in her “City of Presidents”.

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

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Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

Washington — There are fireworks, and then there’s what’s in store for Saturday in Washington, D.C.

When the sun goes down on Independence Day, the skies of Washington are expected to fill with a record-setting 850,000 individual fireworks for a 40-minute spectacle like no one has seen before.

A company called Pyrotecnico will attempt the biggest fireworks show in history, using five generations of family know-how and a background in Super Bowls and large musical acts to help America celebrate its 250th birthday with a bang.

“I mean, it is the biggest show that we’ve done,” Rocco Vitale, president of Pyrotecnico, told CBS News. “…My earliest memories of fireworks displays and doing the Fourth of July was here.”

Pyrotecnico has been planning this year’s show since January, using computers to simulate the display. But now it’s time for the real thing.

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Vitale gave CBS News an exclusive look at his not-so-secret weapons: eight barges out on the Potomac River, each one ready to light up the night sky.
 
“Each firing location has a communication device, and its all set on GPS. And once the time of the show is put into the system, it goes at that time,” Vitale explained.

According to Freedom 250, the organizer of the “Salute to America 250 Celebration & Fireworks” on the National Mall, President Trump will deliver remarks at 9:45 p.m. Eastern Time, and the fireworks display will get underway at 10:45 p.m. The event is expected to draw hundreds of thousands of people.


Join CBS for “The Great American Block Party 250,” a primetime special on Saturday, July 4, hosted by CBS Evening News anchor Tony Dokoupil and Entertainment Tonight’s Nischelle Turner, featuring live musical performances, celebrations around the country, and the largest fireworks show in history in the skies over the nation’s capital. Tune in July 4 at 8 p.m. ET on CBS and stream it on Paramount+ and CBS News 24/7.

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