Closure of the Strait of Hormuz due to U.S.-Israel-Iran conflict could impact Nebraska agriculture

LINCOLN, Neb. (KLKN) — Conflict in the Middle East is raising alarms about the shutdown of a vital waterway.

The Strait of Hormuz, located between the Persian Gulf and the Gulf of Oman, serves as a passage for the transport of oil, fertilizer, and other goods.

“If you’re shutting down all of these things, fertilizer prices have jumped 10-20% just like oil prices have,” said Jayson Beckman, an Agriculture Economics professor at the University of Nebraska-Lincoln.

Fertilizer plants sit around the Strait, serving as the largest producers.

But Iran borders the Strait, and the country has started attacking other regions around it, disrupting the ships navigating the waterway.

Without access through the Strait, shipments are stalling out, and Nebraska farmers may have to make some tough decisions.

“It even impacts their planting decision,” said Beckman. “Soybeans require fewer fertilizers than corn. It could affect what they’re planting. You might even see more wheat in western Nebraska just because it’s too expensive to grow corn.”

Another repercussion of the shutdown would be delays in getting products to and from their destinations.

“What you’re doing is not only closing off an important waterway, but you’re shutting down all of the plants located around the waterway,” said Beckman. “So you get a double-whammy. You shut down production, you shut down any transportation going through there. Ships have to go further, it costs more to insure them, and then you have less product.”