Plant City fertilizer company talks rising costs of nitrogen-based fertilizer, diesel fuel amid Iran conflict
Higher gas prices impact Florida agriculture industry
Higher gas and diesel prices are impacting the area's agriculture industry. Along with the higher cost of fuel for equipment, the cost of fertilizer is also expected to increase. FOX 13's Carla Bayron reports.
PLANT CITY, Fla. - The Iranian conflict has disrupted shipping through the Strait of Hormuz, raising the price of fertilizer and diesel fuel.
This has become a major concern for farmers here in Florida and beyond.
David Carson is the president of Chemical Dynamics, a third-generation, family-owned micronutrient company in Plant City.
"We've been in business for 53 years," he said.
By the numbers:
Thirty percent of their business comes from selling nitrogen-based fertilizer to strawberry growers in Hillsborough County.
The price of nitrogen-based fertilizer, much of which is produced in the Middle East, has increased by around 30 percent amid the Iran war.
"Most of Florida, with citrus, vegetables, and turf, you need nitrogen," said Carson. "We grow 12 months out of the year, and with the sandy soils, farmers may try to cut back and do some creative things. But there's only so much they can cut. They still need some nitrogen."
Dig deeper:
Carson says there is enough nitrogen in the pipeline right now, but if the war continues for more than 30 days, farmers here, and especially in the Midwest, will be significantly affected.
"The other thing we're affected by is gas and oil prices," said Carson. "Everything we're bringing in right now—our freight—is higher. We've had some standard freight rates with reliable suppliers, and they've had to add a surcharge to cover the difference in diesel fuel prices."
READ: Florida agriculture takes big hit after multiple winter freezes
Farmers also rely on diesel for their irrigation equipment.
Why you should care:
Carson says food prices at the grocery store will eventually be impacted, but the effect will be felt more in the transportation and distribution of food rather than in its production.
He says the last time the industry dealt with a situation like this was during COVID, but just like then, they'll find a way to get through it.
"It could spur some better competition," said Carson. "Venezuela, which has been adversarial to us, has the ability to produce a lot of urea nitrogen. If they can get back on board, they're closer to us and could help offset some of that 20% increase. That could take some time, but if the situation is prolonged, they could ramp up production as well."
What they're saying:
He hopes the war can be resolved within 30 to 60 days.
The Source: This article was written with information from David Carson, President of Chemical Dynamics, and Fox News.