Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. A JPMorgan warning is racing across social media (1): Fertilizer shortages could trigger a total global food supply crisis in 2027. However, the threat may take months to reach grocery stores.
Farmers facing scarce or expensive fertilizer can absorb the cost, use less of it or switch crops. Each choice would reduce supply or raise food prices after the next harvest. Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA.
Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes "Rising fertilizer prices could lift global food inflation temporarily to 4-5%," warned (2) Nora Szentivanyi, a senior global economist at JPMorgan. She expects the impact to appear after a considerable delay.
That could bring another inflation shock for Americans who are still rebuilding their savings. It could also erode investment returns and retirement income. The Middle East supplies roughly 42% of global urea exports and 27% of ammonia exports, two key fertilizer ingredients for staple crops.
The Iran conflict and closure of the Strait of Hormuz have disrupted those supplies. JPMorgan said nitrogen fertilizer prices rose between 25% and 50% from late February to April, while Nutrien expects (3) nitrogen markets to remain tight through the second half of 2026. Timing makes the shortage harder to fix.
Nitrogen fertilizer must be available when crops are planted and there are no widespread strategic reserves. JPMorgan estimates (4) damaged fertilizer plants could take up to four years to restore, while some natural gas facilities could take up to five years. Grain supplies face pressure, too.
Extract — continue reading at the source.
