Farmers are facing higher production costs following disruption to the Strait of Hormuz linked to the Iran conflict, with increases in fuel prices and pressure on fertiliser supply.
In Washington State, growers report that rising input costs are affecting profitability. "Our prices are just continually escalated every year, and our returns actually have decreased," said Blaine Smith, an apple grower at Bountiful Orchards near Wenatchee. "Put those two together, it's not a good mathematical equation."
USDA data for 2024 ranked Washington last in the country for farm profitability, with average losses of about US$396,000 per farm. Contributing factors include higher manufacturing and labour costs, a strong U.S. dollar, and competition in export markets.
Further data reflecting the impact of the Iran conflict and tariffs is expected in 2026 and 2027.
Industry representatives are calling for support measures. Dillon Honcoop of Save Family Farming said that rising costs linked to the conflict could affect farm viability, alongside existing pressures. "While this may be a moment that presents a straw that breaks the camel's back, what about all those other straws that were stacked up?" he said. "We need to get serious about that here in Washington state to deal with this issue if we want a future of family farming here in Washington."
Growers across multiple crops report similar cost pressures. Geordy Bryant Greene of the Washington State Potato Commission said, "This is a direct hit to growers. When conflict disrupts the Strait of Hormuz, you're talking about immediate pressure on fuel and fertilizer; two inputs we can't operate without. For Washington potato growers, that means higher diesel costs and tighter, more expensive nitrogen right as planting decisions are being made. And the reality is, we're already starting from behind. Washington ranks dead last in the country for farm returns, nearly US$300 million in the negative, so when disruptions like this hit, it doesn't just squeeze margins, it puts real operations at risk."
Source: The Reflector
