Matthew Thomas
As the world braces for greater economic impacts because of the war in Iran and that country’s subsequent blocking of the Strait of Hormuz, cutting off critical fuel and fertilizer component supplies from the world, Vermont’s agricultural industry is already feeling the pinch. Costs of critical products such as fuel and fertilizer are rising. The conflict continues with no apparent end in sight, and the growing season has arrived.
In a recent newsletter, Ananda Gardens, a small organic farm and community-supported agriculture (CSA) operator in Montpelier, noted rising costs of food and fertilizer as challenges Vermont farmers now face. In an email to The Bridge, Patrick Sullivan, farmer and production manager at Ananda Gardens, said they’ve seen cost increases since the COVID pandemic, along with even greater increases since the tariffs went into effect.
As an organic farm, Sullivan said, Ananda Gardens does not use the kind of synthetic fertilizer coming from the conflict region. He did note a jump in the price of diesel fuel, which has led to a rise in delivery prices.
“We don’t use any synthetic fertilizer,” Sullivan said, “But everything is affected, even natural organic fertilizers, because of delivery or production costs.”
Lindsey Brand, marketing and communications director with the Northeastern Organic Farming Association of Vermont (NOFA-VT), concurred in an email to The Bridge. Like Sullivan, Brand said organic farming is not affected by the fertilizer shortage directly, but farmers’ production costs generally have risen. Where the closure of the Strait of Hormuz does hit directly, Brand said, is in fuel costs.
“Diesel fuel powers some farm equipment and the trucks used to transport food,” she said. “We’ve heard from some farms that distribute regionally that trucking costs have doubled since the strait closed.”
Heather Darby, a faculty fellow with the Gund Institute for Environment, part of the University of Vermont, spoke with The Bridge in March at an earlier stage of the conflict. At that time, Darby predicted rising fuel and fertilizer prices, which have since come to pass.
“What we commonly see is that the trickle-down effect certainly impacts most everyone,” Darby said. “I wouldn’t say anybody squeaks by unscathed here,” she said, adding that increased fuel surcharges get passed down to all types of farmers. “Certainly any farm that is using a lot of fuel, maybe purchasing a lot of commercial fertilizer, they certainly would be the most impacted.”
Last week, Darby did not have any updates to her March remarks. “Fuel costs keep rising and the field season is underway,” she said in an email to The Bridge. “Farmers are trying to cut costs in other ways to make up for these added expenses.”
“For now we’re purchasing ahead to make sure that we have enough to get through this year without making any drastic changes,” Sullivan said, adding that being a small farm allows for greater adaptability and that Ananda Gardens can switch crops or use different organic fertilizers if necessary. “We’re not so tied to any certain product and can adapt the way we farm,” he said.
Because Ananda Gardens set its CSA prices in 2025, Sullivan said, they are absorbing some of the rising costs now. In order to keep the farm running well, he hopes that this year’s sales will be at least comparable to last year’s numbers or, “ideally better.”
“In general, restaurants and the few other farms I’ve talked to are a little slower than usual,” he said, likely because of concern about the future economy and consumers scaling back spending. Sullivan said that Ananda Gardens offers payment plans for those unable to pay the entire CSA cost upfront.
“War, fossil fuels, and industrial farming have always been linked in the United States,” NOFA-VT’s Brand said. “The companies that profit from war, fossil fuels, and the industrialization of farming are often one and the same, with deeply interconnected supply chains, ownership, and investments.”
