YAZOO COUNTY, Miss. — Mississippi Delta farmers are facing another expensive planting season as fertilizer and fuel costs continue to climb.
Farmers in Yazoo and Sharkey counties, Clay Adcock and Jeffrey Mitchell, said it has been years since their crops turned a real profit.
“I guess it would be since 2022,” Adcock said.
“Last 2.5 to three years since we had a very profitable year,” Mitchell said.
Rising input costs squeeze farmers
Adcock said he was paying $300 per ton of fertilizer before the war with Iran broke out. He is now paying double for the same amount. Mitchell saw similar spikes.
“Fertilizer was up 25% before the Iranian conflict already,” Mitchell said. “Then since that started Diesel fuel is up 40% in the last six months.”
Survey and research from the American Farm Bureau show they are not the only ones feeling the pinch.
“We’ve got trouble with the farming community,” Adcock said. “And you can see that with the bankruptcies that are there and no young farmers that can afford the capital to get started.”
Mitchell said today’s farmers face a shrinking industry of suppliers. 75% of all fertilizer in the U.S. comes from four companies: Yara USA, CF Industries, Nutrien and Koch Industries.
“With the world market on fertilizer, pretty much everyone has the same price,” Mitchell said. “It’s not like you can go to store B, get a better price.”
forces
Oil and natural gas cut off in the Strait of Hormuz forces energy companies worldwide to compete for less supply. The spike in costs passes on to fertilizer producers, who pass higher prices on to distributors, leaving family farms at the end of the line with the most expensive bills.
“They deliver it to us and we’re at their mercy,” Adcock said.
Adcock said he would like to see more regulation to even the playing field among fertilizer companies and prevent potential price gouging.
“There should be guiderails in place to keep fertilizer producers within a range and if they get out of that range it throws up red flags as they do in the SEC with stocks,” Adcock said. “Have some consistency in our business.”
Mitchell said the costs will circle back to consumers at the store. The spike in diesel also increases the cost of transporting finished crops after harvest to stores.
“Everything will be higher once it gets to Kroger or Wal-Mart or wherever,” Mitchell said. “They’ll just pass it onto consumers.”
It is too early to tell what the final prices will look like once harvest season is over. Each farmer said one way consumers can help is to buy as much produce as possible directly from farmers at markets and buy American items.
Want more WLBT news in your inbox? Click here to subscribe to our newsletter.
See a spelling or grammar error in our story? Please click here to report it and include the headline of the story in your email.