Washington farmers feel the pain of Iran war

The ongoing Iran War is affecting consumers at the gas pump. But for farmers, it’s not just the price of fuel, but fertilizer, too. And that could affect what we all pay at the grocery store.

KUOW’s food reporter Ruby de Luna joins us to tell us more.

This interview has been edited for clarity.

Kim Malcolm: Ruby, I know you’ve been talking to farmers–what are they telling you?

Ruby de Luna: They’re very worried and they’re paying close attention to what’s happening in the Middle East.

I spoke with Andrew Albert, a third- generation farmer in Arlington, Washington. He grows hay, wheat, corn and cabbage on his 1,400 acre farm. At the moment, there’s not much activity in the fields. But as he gets ready for the planting season, he’s keeping track of fuel prices. He notes that diesel already costs $2 per gallon more than before the war, an all-time record.

But in a month or two when the farm work starts, that’s when he’ll start to feel it.

“On average, to most people a large tractor would burn 10 to 15 gallons an hour,” Albert said. “We’re running 15 to 20 tractors at a time at our busiest times, and then with trucks running at the same time, it’s easily several thousand gallons a week.”

That adds up!

It does. And it’s not just fuel. He worries the war will raise the cost of farm supplies like twine, the plastic to wrap bale, and fertilizer.

"The people that we deal with, they pre-buy so they have already filled their barns with fertilizer that will hopefully get us most of the way through the year," Albert told me. "I met with one of them yesterday and they said they have contracts that might even go through the full year after that. If we don’t see a reduction in the price of oil, then it’s going to get real, real ugly on the fertilizer side."

Fertilizer, in particular is a big concern. About a third of the world’s fertilizer trade is shipped through the Strait of Hormuz, a vital shipping route. As you know, that waterway has been disrupted since the war began.

I understand this is all happening at a time when the industry is already struggling?

That’s right. Farmers have complained they’ve been operating under a tough economic environment that includes pressures like rising labor costs, and, even before the Iran conflict, high fuel prices stemming from the Washington Climate Commitment Act. It’s been so tough that some have quit. And it’s not just farms that have shuttered — food processing plants and other businesses that support the industry have closed, too.

According to the USDA, Washington lost more than $1 billion in farm revenue, between 2023-2024.

OK, can you connect the dots for us — how do higher gas prices have ripple effects on consumers? What does this mean when we go to the grocery store?

It means higher food prices. But farmers are just at the front end of the supply chain.

“In general, farmers can’t control prices, influence prices — they’re price takers,” said Joe Phillips, professor of economics at Seattle University. “If you think of the way the food supply chain works a very small proportion of the cost of the final item that you purchase is actually due to the ingredients.”

In other words, the raw ingredient is just one piece of the supply chain puzzle?

That’s right. Depending on how many stops those items will make on its way to grocery shelves, each stop adds up.

“You have to think about the different production costs, the transportation costs, the selling costs that just add up and are, in many ways, a much bigger part of the price that consumers pay,” Phillips said.

Phillips adds the costs may vary depending on the product.

If these increases take a while to be felt in the food production system, how long could they last?

The general sentiment is that the extent of the price increase will also depend on how long the conflict lasts.