The United States is exploring increased fertilizer imports from Morocco and Venezuela as it confronts a sharp shortfall in agricultural inputs caused by disruptions to global fertilizer flows linked to the ongoing U.S.–Israel–Iran conflict, White House economic adviser Kevin Hassett said on Tuesday.
Speaking to CNBC, Hassett described efforts with Morocco — the world’s biggest exporter of phosphates and fertilizer products through state‑owned OCP Group — as part of an “insurance policy” to cushion U.S. farmers from volatile supplies and rising costs.
The strategy comes after maritime disruptions in the Strait of Hormuz, a key shipping corridor for global fertilizer exports, severely curtailed the movement of ammonia, urea and other key inputs. The closure has affected roughly 20–30 percent of the world’s fertilizer export traffic and around 35 percent of global urea shipments, according to industry analysts, compounding supply constraints as Gulf producers either halt production or lose access to export routes.
For the United States, which relies on imports for about 10 percent of its ammonia, 35 percent of urea and up to 40 percent of processed phosphates, the impact has been immediate. Fertilizer prices have spiked in recent weeks, with urea rising over 30 percent on U.S. markets, intensifying input costs for farmers ahead of the spring planting season.
“We’ve … established licenses for Venezuela to produce more fertilizer. We’ve had discussions with Morocco,” Hassett said, noting that expanded supplies from those countries could help blunt the effects of disruptions tied to the conflict.
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Morocco’s significance in the global fertilizer market stems from its vast phosphate reserves and extensive export infrastructure. OCP Group, the state‑owned firm based in Casablanca, operates the Jorf Lasfar processing complex — one of the world’s largest fertilizer production hubs — and has a global distribution network that reaches key agricultural markets in Europe, Latin America and Asia.
The U.S. effort to diversify sources reflects broader geopolitical shifts in global supply chains as conflict and trade tensions constrain traditional export routes. With nitrogen fertilizer prices climbing and nitrogen‑based products essential for many staple crops, analysts warn that sustained shortages could force U.S. farmers to cut application rates, shift cropping patterns or face lower yields, potentially feeding into higher food prices later this year.
The move to increase imports from Morocco and Venezuela is also seen as part of a strategic effort to reduce dependency on Middle Eastern supply corridors affected by conflict. For Morocco, expanded shipments to the U.S. market could present a growth opportunity, especially as the kingdom aims to increase its fertilizer output from about 12 million tonnes to 20 million tonnes by 2027.
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While discussions with Moroccan authorities and companies are ongoing, it remains unclear how swiftly new supply arrangements could be operationalised or whether long‑term contracts will be negotiated. U.S. officials say any increase in imports is designed as a short‑ to medium‑term buffer rather than a permanent shift in sourcing strategy.
For American farmers, securing alternative fertilizer supplies could ease immediate cost pressures and provide greater certainty ahead of critical planting windows. But experts caution that broader structural challenges in the global fertilizer market — including production bottlenecks, logistical constraints and geopolitical risks — may keep volatility elevated in the months ahead
