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Food Crisis Hits Farmers as Oil Soars

Wall Street Journal Markets •
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Rising oil prices from the U.S.-Iran conflict are squeezing farmers worldwide, with Filipino vegetable farmer Bic Pagkaliwangan seeing his earnings cut in half. The closure of strategic waterways like the Strait of Hormuz has triggered energy cost increases that ripple through agricultural supply chains. Small-scale farmers, already operating on thin margins, face unprecedented pressure as input costs surge.

Pagkaliwangan reports diesel-powered farm machinery now costs 25% more to hire, while transport expenses to market have jumped sharply. His tomato prices have fallen to just 25 Philippine pesos per kilogram, with okra fetching 30 pesos per kilogram. These price drops combined with rising operational costs threaten the viability of commercial farming operations across the region.

The global food system stands at a critical juncture as energy price volatility directly impacts agricultural productivity. With oil prices showing no signs of stabilization, farmers like Pagkaliwangan face a stark choice: absorb mounting costs or abandon commercial farming entirely. The conflict's economic consequences extend far beyond battlefields, potentially reshaping food security for millions.