Senate Democratic Leader Chuck Schumer has introduced a bill that would require the U.S. Department of Agriculture to study whether a national fertilizer reserve could protect farmers from price spikes and supply disruptions.
Schumer, a New York Democrat, introduced the Strategic Fertilizer Reserve Act with Sen. Amy Klobuchar of Minnesota. New York State farmers are among those facing the higher costs cited by the senators. The proposal would begin with a feasibility study; it would not immediately create a reserve or release fertilizer to farms.
The senators said fertilizer costs have climbed amid the war in Iran and trade disruptions. Their release cited New York Farm Bureau figures showing a rise from about $400 a ton last year to $580 a ton, an increase of more than 40%. It said anhydrous ammonia now costs more than $1,000 a ton.
Those figures describe prices cited by the bill's backers, not a statewide price survey independently verified in the release. Schumer argued that a reserve could give farmers a backstop when a global crisis disrupts supplies and could help stabilize costs that affect planting decisions.
What the bill would study
The proposed legislation would direct USDA to examine the potential reserve's size and locations, whether it could stabilize prices, safety and risk management, and rules for withdrawing supplies. If the department reached a positive finding, the bill would establish a board with representatives from the agriculture community to oversee operations and require regular reports to Congress.
Klobuchar said the study would help determine whether a reserve could strengthen the supply of farm inputs over the long term. The release did not specify a proposed inventory, federal cost, storage site or date when farmers could access fertilizer. Those questions would depend on the study and further implementation.
The senators linked the price increase to a sharp decline in shipments through the Strait of Hormuz. Their release said the waterway handled about 30% of the world's fertilizer-related shipments before February 2026 and that shipments had fallen close to zero for several months. It did not break out which fertilizer products or New York suppliers were most affected.
Pressure on New York farms
The release cited a New York state report estimating that farmers face $20,000 more in annual expenses. It also cited a minority-party report from Congress's Joint Economic Committee that estimated an average farmer spent as much as $1,500 more to refill an on-farm fuel tank than at a comparable high point in 2025. The senators said higher fuel and fertilizer costs could complicate decisions about acreage for next year's crops.
The senators also pointed to 315 farm bankruptcy filings nationally in 2025, up 46% from the previous year, including nine in New York. They cited USDA data showing small family farms accounted for 14% of agricultural sales and that their number fell 10% from 2017 to 2022. The figures describe broader farm pressure; the release did not establish that fertilizer prices caused those bankruptcies.
The National Farmers Union and New York Farm Bureau support the bill, according to the senators. No committee vote or timetable for action was provided in the announcement.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.