DALLAS — Texas Agriculture Commissioner Sid Miller said on April 12 that fertilizer shortages and price spikes tied to Iran's closure of the Strait of Hormuz have reduced Texas corn acreage and are likely to push grocery prices higher. He said he expects the federal government to issue a second bailout for farmers due to the Iran war.

"We've already seen the effects of that. Our corn acres are down." Miller said. Referring to retail food costs, he added, "That could drive it (grocery store prices) up."

Up to 30% of internationally traded fertilizers flow through the Strait of Hormuz, according to the Food and Agriculture Organization of the United Nations. Some fertilizer prices have risen 30% to 40% since Iran closed the strait, according to Bank of America. Farm diesel prices have increased by 46% since the end of February.

An American Farm Bureau Federation survey conducted April 3 through April 11 received responses from more than 5,700 farmers. Around 70% of respondents said they cannot afford all of the fertilizer they need, a figure that rose to 80% in the South region. Nearly six in ten respondents reported worsening financial conditions.

James Foster, a farmer who has worked the land for 25 years and grows nearly 1,100 acres of corn, one of the most fertilizer-dependent crops, said the cost pressures have been severe. "The increase in fertilizer costs from the time the war started until now has cost me an additional $15,000." Foster said. Had he not paid the additional costs, he would have lost his crop and incurred losses in the hundreds of thousands of dollars.

Foster said it costs $1,000 to fill up the tank in his large tractor. The tractor can run for two days on one fill if not under heavy load, but under cultivation it uses a full tank in one day.

"It's the toughest it's been since I've started. There's farmers going out of business now." he said. Farmers receive around six cents for every dollar spent on food. "We're price takers because we have to take what the market will pay. And it really doesn't make a whole lot of sense." he said.

Last year, President Donald Trump announced a $12 billion aid package for American farmers to help those hurt by trade policies and tariffs. "The government payments, though, are completely necessary to keep a lot of farmers in business." Foster said. He added, "I think what Trump is doing, it's going to hurt a little bit in the beginning, but in the long run, we're going to be a lot better off for it."