Post by Agriculture Capital
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Since the Iran War started, urea prices are up 30-33% and diesel prices are up 39%. This creates near- and long-term ramifications for farmers with high dependence on fertilizers and machinery, potentially driving up food prices for the everyday consumer. This isn't a one-off. It's latest data point in a broader patten about geopolitical shocks that impact farming costs, especially for conventional farmers. With conventional agriculture’s high exposure to dramatic swings in input costs, the economic case for regenerative management becomes harder to ignore: not just as a long-term investment, but also as a prudent, near-term financial hedge. Regenerative farms use an estimated 37% less synthetic fertilizer and 22% less fuel. Our latest AC Mindset piece dives into the cost differences between a conventional vs. regenerative farm impacted by these dynamics. How has your farm been impacted by this latest supply chain shock?