Valparaiso-area farmer Tom Murphy is a rarity in modern agriculture: a first-generation farmer.
Murphy said he was infatuated with farming from an early age, enough so that, in his 15 years growing corn and soybeans, he’s been willing to weather the ups and downs of the industry. What is happening now, he said, is going to put some farmers out of business.
“It’s unprecedented,” Murphy said of the current price hikes. “We knew the profit margin was already going to be low this year. Now all of the sudden, it’s even lower. You’re looking at a very tight margin, if any, for corn this year, especially in our area of the state.”
A combination of factors, most recently the war in Iran, has conspired to create shortages for both fertilizer and diesel fuel, two crucial elements for the farming economy to thrive.
Even farmers who utilize regenerative practices are feeling the pinch. Matt De Jong, who owns a farm in Merrillville, tries to use “cow doo” as much as possible for fertilizer needs, but noted he still needs to purchase 1.5 tons of synthetics for the year. De Jong said his fertilizer cost is up 15% this year, and his fuel cost is up as high as 30% over years past.
For the most part, local farmers have already purchased fertilizer and resources they need for the upcoming spring and summer growing seasons. So a shortage in nitrogen fertilizer isn’t necessarily an immediate concern. However, farmers are worried that when they purchase supplies for next year, they may be faced with some difficult choices.
“If you don’t lay down nitrogen fertilizer, you’d be farming organically, and your yield will be cut in half,” said Lowell farmer Dan Sutton, who is president of the Lake County Farm Bureau.
According to Sutton, a lot of farmers may be able to swap out soybeans, which are less nitrogen-intensive, in place of corn, but there will be cascading effects, including a subsequent shortage of corn yield.
In addition, Murphy said that with soybeans, there is added pressure around fertility and disease, so farmers switching will also need to adjust their pesticide use. He also noted the bean market in Northwest Indiana was “slim” and that farmers will end up needing to haul their crop further away, which means getting squeezed again with fuel prices.
“We’re hauling beans 85 miles (to) Claypool, Indiana,” Murphy said. “Our corn only has to go half as far.”
Murphy estimated that fuel and labor costs to operate tractors have jumped up for him by $700 a day.
While farmers are always needing to plan and prepare for future growing seasons, the pace of price increases has made anything other than reactionary planning incredibly difficult.
“More soybeans will (be) produced than is probably needed,” Sutton said. “Then the price of soybeans will go down. You will need a buffer built in.”
They also expressed skepticism and concern that sellers are trying to take advantage of current uncertainty via price gouging and other schemes that push costs onto local producers.
“We’re a net oil exporter,” Sutton said. “I fail to see how an oil crisis in the Mideast affects our prices. Diesel fuel costs are insane right now. Same thing with nitrogen. It’s a psychological thing. This year’s nitrogen is already here. It’s just an excuse to raise prices. Our society has learned they can charge whatever they want for semis going down the road.”
Even before the Iran war, U.S. Rep. Frank J. Mrvan, D-Highland, had created and convened a local Agriculture Advisory Council. When the group met for the first time in February, the council expressed concerns about prices and profitability.
“I believe protecting and advancing the farmer in Northwest Indiana and America is a national security issue,” Mrvan said in a statement back in January. “I welcome this opportunity to listen and incorporate the council’s feedback in my federal policy efforts on issues related to agriculture.”
Murphy praised Mrvan as a “great resource” for Northwest Indiana farmers and for providing open communication lines.
Nevertheless, if farming isn’t profitable, many growers will be forced to shut down or sell their land, with a shrinking likelihood of anyone stepping up to replace them, Murphy warned.
“Already, the amount of money it takes to get into farming is ridiculous,” he said. “People need to realize that without farmers, it will get more expensive at the grocery store. Things like data centers look good for the tax base, but losing farm acreage will cause more problems long-term than most people realize.”
According to the FFA, farming is already the oldest workforce in the nation, and 40% of all farmland is owned by farmers who are 65 and older.
“I had a younger farmhand help out a few years ago,” Sutton said. “I told him, put your money back into land and machinery. But as a farmer, you’re eternally in a cash-poor position. Meanwhile, this guy’s buddies were going off working union jobs, becoming operators at mills where they had a good salary, benefits. They were buying houses, getting married, kids, two cars and a Harley. My guy said that and said, ‘I want that instead.’ I said, ‘I don’t blame you. Go get it.’”
Despite the ominous forecast for the next few years, Murphy wasn’t resigned to a bleak future.
“To be a farmer, you have to be an optimist," Murphy said. "Otherwise, you will not stay in the game long. Long-term, we just want more marketing opportunities for our crop. That is what farmers are good at.”
© Copyright 2026, nwitimes.com, Munster, IN