Trump Administration Seeks Alternative Fertilizer Supplies

The Trump administration is working on securing alternative fertilizer supplies for U.S. farmers as conflict with Iran threatens shipping through the Gulf, White House economic adviser Kevin Hassett said on March 17.

Washington had already taken steps to offset potential shortages, including authorizing increased production in Venezuela and opening discussions with Morocco, Hassett said, speaking on CNBC’s “Squawk Box.”

“We've put established licenses for Venezuela to produce more fertilizer. We've had discussions with Morocco, which has the largest reserve of potash anywhere on Earth,” the White House adviser said.

“And so we've been all over the fertilizer problem. And I'm not saying that we can eliminate what disruption there is so far, but we can minimize it for sure.”

Fertilizer is critical to crop yields and the global food supply. Most fertilizers contain nitrogen, phosphorus, and potassium, the three primary nutrients needed for plant growth, according to the U.S. Environmental Protection Agency.

Because of its importance, fertilizer supply disruptions can ripple through food systems.

The effective closure of the Strait of Hormuz following the onset of the Iran war last month has led to a sharp disruption to global shipping, particularly for oil and energy flows, driving up prices and forcing importers to seek alternative routes.

“If there is a lack of fertilizers this year, there’s going to be also food deprivation next year,” she said.

German Foreign Minister Johann Wadephul also cautioned on March 16 that shipping disruptions in the Gulf could drive up global food prices because fertilizers move through the region.

Hassett acknowledged disruptions could not be fully eliminated but said they could be reduced.

Asked whether alternative supplies would be prioritized for domestic use, Hassett said the focus was squarely on U.S. agriculture. He said fertilizer supplies were a top concern, because U.S. farmers apply large quantities during the spring planting season.

He noted that common fertilizers include ammonia-, urea- and nitrogen-based products, as well as potash, which is typically applied in the fall but still crucial to crop yields.

According to U.S. Department of Agriculture transportation data, imports typically arrive at major ports on dry bulk vessels or enter by rail from Canada, then move inland by barge, rail, pipeline, and truck.

In the Middle East region, Saudi Arabia accounted for 24 percent of U.S. phosphorus fertilizer imports and 4 percent of nitrogen fertilizer imports over the past year. Israel supplied 16 percent of U.S. phosphorus fertilizer imports, while Lebanon accounted for 5 percent.

Import volumes also follow a seasonal pattern tied to farming cycles. USDA data show shipments rise sharply in late winter and early spring ahead of planting, fall during the growing season, and increase again toward winter preparation.

Between February 2025 and January 2026, potassium imports were consistently the largest, at roughly 928,000 tons in April and about 573,000 tons in December.

“We are basically getting briefed on every nuance of the war every day and then thinking through the economic implications,” he told CNBC on March 17, adding that officials had prepared for disruptions across sectors “from fertilizer to getting fuel to the West Coast.”

He said the administration believed the conflict would last weeks rather than months, consistent with President Donald Trump’s earlier timeline.

“The bottom line is that the timeline that President Trump has stated over and over is that it's a four- to six-week war and that we're ahead of schedule,” Hassett said.

Despite higher fuel costs, he said the U.S. economy remained resilient.

“The U.S. economy is fundamentally sound,” he stated, adding that Iran had not significantly damaged U.S. economic performance.