‘We’re in survival mode’: Alabama row crop farmer, economist speak on struggles amid Strait of Hormuz closure

MILLBROOK, Ala. (WSFA) - Row crop farming isn’t what it used to be for Shep Morris Jr.

“There’s been several factors in the last five to eight years that have played into this,” explained Morris, who farms in several central Alabama counties. “Inflation has occurred and it’s basically raised our cost of production drastically, yet commodity prices for our crops haven’t matched that.”

The latest factor for Morris is the closure of the Strait of Hormuz in the ongoing war with Iran. The strait is a vital shipping lane for oil and natural gas.

That natural gas can be used to make nitrogen-based fertilizer, and Morris grows the highly nitrogen-dependent crop of corn, saying he needs 240 pounds of nitrogen per acre.

“About 25% of our corn production costs are going to be specifically for fertilizer, about 16% are nitrogen, and so that’s gonna be a major impact there,” said Auburn University agricultural economist Wendiam Sawadgo.

While the United States doesn’t heavily rely on imported natural gas, the increased global demand from the strait’s closure is increasing costs worldwide.

“That cuts your profit margin down significantly,” Morris said. “Right now, it was already pretty hard to turn a profit on it. So in the row crop agriculture world, we’re in survival mode right now.”

Sawadgo believes it remains uncertain if the rising production costs will translate into increased produce costs, but the potential for an increase is there.

Morris says he’s seen corn and cotton prices rise a bit, but he’s shocked it hasn’t gone up more.

Oil prices did drop following the recent ceasefire announcement between the U.S. and Iran, but the Iranian parliamentary speaker said the next day that the U.S. had already violated the ceasefire.

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