Ag Journal: Increased fuel, fertilizer prices affect Skagit County farmers

As spring planting begins, Skagit County farmers face soaring fuel and fertilizer prices because of the war with Iran.

Jason Vander Kooy, a Skagit-based dairy farmer and vice president of Save Family Farming, said in a statement from the organization that, "The conflict in Iran is affecting farmers here in Washington, as fuel and fertilizer prices spike. As farms are already grappling with the state's worsening farming profitability crisis, these additional costs are pushing them even closer to the edge of closure."

The war has caused a slowdown in shipping through the Strait of Hormuz, which handles about 20% of the world's oil and natural gas.

According to the American Farm Bureau Federation, about 15% of the country's fertilizer imports come from the Middle East. Key fertilizer ingredients, such as urea and ammonia, are often sourced from the region.

Since last month, the state's average gasoline price has risen from $4.08 a gallon to $5.21, according to AAA Fuel Prices. These higher fuel prices directly increase transportation and production costs for farms, further narrowing already narrow profit margins, especially given the state's geographic disadvantage as a corner state.

Additionally, the average North American fertilizer price per ton has increased from $753 in late February to $923 on March 20, according to Green Markets.

For farmers, this translates to significantly higher input costs, adding financial pressure to their already tight budgets.

The amount of fertilizer needed per acre depends on the nitrogen source, resulting in a range of 8.4 to 18.3 acres per ton, according to The Ohio State University.

In 2022, the average farm size in the county was 113 acres, based on U.S. Department of Agriculture Census of Agriculture data.

With current fertilizer prices, these costs now account for a significant portion of farm budgets, reducing profitability and leaving less money for other critical expenses. For an average farmer, fertilizing their land can now cost between about $5,700 to $12,400.

Prices rose in 2021 as well, but at that time crop prices increased enough to offset higher expenses. Today, however, farm incomes are not keeping up with rising costs, resulting in reduced profitability for farmers.

"Since then, our crop prices have fallen back to pre-COVID levels, but the fertilizer prices have remained high," said Michael Hughes, a worker at Hughes Farm west of Burlington. "It's tightened the margins over the last five years now, and then just seeing them go higher now is going to be it's just going to even make those margins even tighter."

These rising prices have worsened the financial outlook for farmers in the state, pushing more farms toward unprofitability.

In 2024, farmers in the state were about $4 million in the red, according to the USDA Economic Research Service, illustrating the severity of the economic pressure.

"While we cannot control a global conflict like what's happened with Iran, our leaders in Olympia can prevent the collapse of farming here by addressing the out-of-control costs they've placed on people simply working to grow food," Vander Kooy said. "Unfortunately, lawmakers ended the legislative session without delivering real relief for Washington farms struggling to survive under the burden of state government-imposed costs."

Compared to other states, Washington's farmers face a clear policy disadvantage, according to the Washington Policy Center.

A 2025 policy brief from the center attributes much of this to the state's "price taker vs. price maker" economic tension in agriculture, which has been largely ignored in legislative cycles.

This means many producers must sell at prevailing market rates, while only specialized growers can set their prices.

This tension worsens as consumers demand fair wages for farmworkers, while international producers often pay workers much less.

The policy brief states, "When consumers pay more for better labor practices or better environmental stewardship, they are paying grocery stores, shippers, and packers, not the farmers and ranchers who bear the burden of implementing those desires."

Despite high prices, Hughes remains optimistic about the future.

"I do feel hopeful for the future," Hughes said. "Agriculture goes through ups and downs ... There'll be another up someday, and hopefully the farms in the area can hang on to get to it."

Copyright 2026 Tribune Content Agency. All Rights Reserved.