How The Iran War Impacts Nebraska Farmers

Things in Nebraska are getting tighter than husks on fresh-picked corn. It may seem unrelated, but the military drama with Iran is making life miserable for our local farmers. Basically, global politics is torching the prices of certain key things, and now Nebraska’s fields are feeling the burn. The situation is moving fast, but here's the sitch (at least at the time of this writing)!

‍

Here are Five Fast Facts on how the Iran war is impacting Nebraska farmers:

1. 🛢️ The Hormuz Problem - Nearly one-fifth of the world’s oil travels through the Strait of Hormuz, a hugely busy shipping waterway in the Middle East. Iran decided to play grumpy bouncer at Club Hormuz, so oil shipments are stuck in traffic, sending prices into the stratosphere.

2. 💩 A Crappy Situation - Fertilizer prices are expected to spike by 20% or more compared to last year. If this keeps up, Nebraska could spend over $2.5 billion on fertilizer alone, breaking the record set in 2022. This is one record nobody wants to put on their fridge. Or smell, on their fridge or anywhere else.

3. 🤦 Bad Timing - The cost increases are hitting right during planting season, so farmers can’t just wait it out; they need fuel and fertilizer NOW, more than a dry pasture needs a three-day soak!

4. 🤝 Helping Hand - Twelve billion dollars in emergency help from the government has already been approved, but they’re asking for $18-$20 billion as costs rise. That's enough to buy roughly 4 billion Flaming Hot Cheeto burritos, though the farmers would probably prefer the diesel.

5. 🆘 In Crisis - Things are so tight that experts are telling farmers to check on their neighbors and call the Farm Crisis Hotline (800-464-0258) if they’re feeling overwhelmed. When the tough-as-nails tractor crowd starts talking about feelings, you know the economy is being a real bully.

🔥Bottom line: Nebraska farmers are currently caught in a giant geopolitical sandwich, and the bread is made of expensive diesel and overpriced manure. Both the US and the International Energy Agency (IEA) are set to release hundreds of millions of barrels of oil to help keep prices under control. We're hoping the conflict winds down soon altogether so prices can get back to normal soon! The next time you eat some corn, give it a little salute - it’s a miracle it survived the war! Agriculture leaders are staying "resilient," which is just a big word for "too stubborn to quit." Farmers are good at that. 💪 

‍

Do you know any Nebraska farmers?

‍

Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!

‍

BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!

‍