If you farm in South Jersey or run a business tied to agriculture, 2026 is shaping up to be an expensive year. Most of what is driving the cost increases is happening far outside South Jersey.
Here is what the numbers look like, why it is happening, and what you can do about it now.
Fertilizer Costs Are Up Sharply
Urea, the primary input material in commercial fertilizer, has jumped roughly 46% in price since last year, with a 35% spike in a single month. That is one of the steeper price surges in recent memory. Across all eight major fertilizer categories, costs are higher than they were this time last year. Regional farmers throughout the Mid-Atlantic are already reporting fertilizer bills running 30 to 35% above last spring.
The root causes are largely geopolitical. Conflict in the Middle East has disrupted shipping through the Strait of Hormuz, a critical corridor for fertilizer exports. At the same time, China has restricted urea exports at least through August 2026. Those two factors colliding at the start of planting season has tightened global supply at the worst possible time.
Rural Communities Like Ours Bear a Disproportionate Share of Fuel Cost Increase
Urban and suburban areas have buffers that South Jersey simply does not. CoBank’s quarterly economic report flagged that the effects of rising fuel and energy costs will fall hardest on rural America with longer drives, no public transit alternatives, and heavy reliance on diesel for field operations. Their estimate: the conflict could add as much as $2,000 in fuel costs per farm operation this year alone.
For a South Jersey farmer, those fuel costs arrive at the same time fertilizer bills come due. These expenses stack fast.
Food Prices Sharply Higher
Industry analysts are projecting global food prices could rise 12 to 18% by year-end 2026, with a potential second wave of price increases in early 2027 as reduced fertilizer application this season works through to lower crop yields. South Jersey Preservation’s 2026 Farmers Summit addressed exactly these pressures. This is already a local conversation, not a distant national one. Higher food prices may mean increased revenue but that does not necessarily translate to improved operating margins.
What This Means for Your Business
If you are farming or running an agriculture-related business in the South Jersey area, now is the right time to look at how these input cost increases affect your year.
A few things worth reviewing with your accountant:
- How significantly have your actual input costs shifted relative to last year’s projections?
- Are your expense records capturing the full scope of fuel and fertilizer increases in a way that supports deductions?
- Do your current pricing or future contract structures reflect what it actually costs to operate this year?
- Are there depreciation or Section 179 elections worth accelerating given capital you may have put in place to manage costs?
These are not complicated conversations, but they are important ones to have before the year gets away from you. In times of rapid change and extraordinary business stress, it makes sense to spend more time on strategic planning and talking through the options with professional business coaching.
If you would like to talk through what these cost pressures mean for your specific situation, reach out. That is exactly the kind of planning conversation we do.