The ongoing conflict in Iran has significantly disrupted the lives of Egyptian smallholders, leading to soaring prices for essential inputs like fertilizers and fuel. These circumstances have forced many farmers to make tough decisions, including reducing their workforce and scaling back their agricultural operations.
Impact of Rising Costs on Smallholder Farming
Since the war began, the cost of farming has nearly doubled, creating a strain that many smallholders can no longer bear. Ashraf Abu Ragab, a farmer in Nazlet Al-Shobak, has halved his land under cultivation and terminated contracts with his workers. Before the conflict, he farmed a full acre but now struggles to manage even half that amount. He has also ceased cultivating wheat, a crop that demands extensive use of fertilizers, signaling a shift in priorities driven by economic necessity.
Abu Ragab highlights the steep rise in input costs: “Fertilizers, seeds, chemicals. The crops no longer cover their costs.” With escalating expenses, many like him are left grappling with the harsh reality that farming is becoming an unviable livelihood. He reflects on his previous workforce of three, saying, “Now I work with my own hands.” This change is emblematic of a broader trend among Egyptian farmers scrambling to adapt to the mounting challenges.
Consequences of Agricultural Disruption
In Nazlet Al-Shobak, the consequences are visible. Irrigation pumps often remain idle as farmers attempt to conserve fuel, leading to some plots left uncultivated. The sight of thin patches of grass growing between rows of vegetables underscores the desperation among farmers to stretch limited resources. With sacks of potatoes stacked along field edges and an uncertain market, many remain in a state of limbo, hoping for better prices that never seem to materialize.
The strain extends beyond individual plots. Tenant farmer Mohamed Ragab, who watches his wheat harvest with skepticism, states, “I will barely get by.” Such sentiments are echoed throughout the area, marking a deterioration in what was once a more stable agricultural sector. Disruptions along vital shipping lanes, particularly the Strait of Hormuz, have heightened energy and fertilizer costs, impacting farmers’ operations significantly.
The Broader Economic Landscape
As Egypt grapples with its dependence on imports, especially for fuel and fertilizer, the ongoing conflict places immense pressure on its agricultural economy. In normal conditions, nearly a third of traded fertilizers pass through the Strait, underscoring how critical global trade routes are to supply chains. Maximo Torero from the FAO emphasizes that “a significant share of critical inputs is being affected,” leaving farmers with few options. They may have to resort to using fewer inputs, switching crop types, or reducing irrigation, all of which reduce yields.
In addition to local challenges, farmers are also navigating volatile global markets. Higher global prices are favoring fertilizer producers, who benefit from increased export demand, while smallholders face mounting operational pressures without the flexibility to adapt. Sherif El-Gebaly from the Chemical Industries Chamber reports that the price of granular urea has surged to nearly $750 per ton, compared to around $400 prior to the conflict. This reality illustrates the growing disparity between large producers and smallholders.
As the situation remains uncertain, many in the farming community, including Abu Ragab, express concerns about long-term viability. “If prices stay like this, many farmers won’t be able to continue,” warns Abu Saddam, head of the Farmers’ Syndicate. This sentiment encapsulates a worrying trend that threatens not just individual livelihoods but also the agricultural backbone of a nation. The ripple effects of these challenges could lead to broader food security issues if issues surrounding input costs and agricultural productivity remain unresolved.