War in Middle East Drives Up Farm Input Costs in Asia

High prices for fuel, fertilizer, plastics and other farming essentials linked to the U.S.-Israeli war against Iran are forcing some farmers in Thailand and other parts of Asia to skip planting seasons. Saithong Jamjai has just finished harvesting rice on her 19 hectares of farmland in Suphan Buri, central Thailand.

She said she will not sow the next crop because the cost of production now exceeds expected revenue. After weeks of calculations, she determined that planting and harvesting would cost at least $33,000 while the grain would sell for only about $22,000.

The surge in prices for fuel, fertilizer and related materials stems from the ongoing conflict. Farmers in the region have faced similar pressures, leading some to avoid planting to prevent financial losses. This reduction in planted area is reported to threaten harvests later this year.

The pattern is not limited to Thailand.

Farmers across Asia are reported to be making comparable decisions as input costs remain elevated. The combined effect of skipped planting seasons could reduce overall agricultural output in major producing countries. Global food supply chains rely on consistent production from the region.

Lower harvests would add pressure to already strained supplies and could contribute to higher food prices worldwide in the coming months. Saithong Jamjai said the mathematics have become unsustainable. She has therefore chosen to leave the land fallow for the upcoming season rather than operate at a projected loss.