Conflict in Iran Drives Grain Prices Higher, Prompting Farm Sales Across Midwest

Agricultural commodity prices have climbed significantly following the outbreak of war with Iran, leading farmers throughout the Midwest to sell stored grain they had been holding due to previously low prices. The price surge has allowed many producers to secure modest profits to offset rising costs for fertilizer, chemicals and seeds.

CHICAGO, March 13 – Agricultural commodity markets have experienced significant price increases following the start of military action involving Iran, prompting farmers throughout the Midwest to rapidly sell grain they had been storing due to previously disappointing market conditions.

Following military strikes by the United States and Israel against Iran, agricultural producers have taken advantage of rising commodity values by moving corn, soybeans and wheat from their storage facilities to ethanol plants and major commodity trading companies such as Archer-Daniels-Midland and Bunge.

Producers have also moved quickly to establish forward contracts for crops they plan to grow and harvest during the current growing season.

The market upturn provided welcome relief for agricultural operations, enabling many to secure small profits that help offset escalating expenses for fertilizer, agricultural chemicals and seed purchases, although producers noted the price improvements weren’t sufficient to reverse the broader agricultural economic decline.

Dave Kestel, who operates a farming operation in Manhattan, Illinois, reported selling approximately 40% of his corn and soybean harvest from last year, plus roughly 10% of his anticipated 2026 production. He had been accumulating daily storage costs for last year’s grain and was ready to move it when market values increased.

“I was doing the farmer happy dance,” Kestel said.

Soybean contracts reached their highest levels since May 2024, climbing above $12 per bushel on the Chicago Board of Trade Thursday. Corn contracts hit their peak since May 2025 this week, while wheat achieved its strongest performance since June 2024.

During the previous year, commodity values declined due to abundant supply levels and reduced soybean export activity resulting from President Donald Trump’s ongoing trade disputes with China. The U.S. Department of Agriculture has begun distributing $12 billion in assistance to agricultural producers affected by Trump’s trade policies.

Market analysts indicated that while the government assistance helps improve short-term financial positions, it does little to address fundamental profitability challenges.

Agricultural producers moved quickly to market their grain as they worked to reduce losses while questioning the duration of the current price rally. Both corn and soybean values have increased approximately 6% from their pre-conflict levels.

“We are basically filling all of our grain elevators in North America and in South America as we speak,” Julio Garros, Bunge’s chief operating officer, said during an investor event on Tuesday.

Rising petroleum prices due to the military conflict have increased values for crops used in biofuel production. The disruption of important fertilizer supply chains has also contributed to higher corn prices.

The market improvements have generally provided enough margin for producers to achieve profitability, though break-even thresholds differ by operation, according to Angie Setzer, partner at advisory firm Consus Ag Consulting.

“When the market rallied big, it provided a lot of opportunities that they had been waiting for,” said Setzer, whose customers sold corn, soybeans and wheat.

Some producers took risks based on projected harvest volumes. Keaton Lyons, who cultivates approximately 1,200 acres in Rensselaer, Indiana, committed to sell about 100,000 bushels of corn he plans to plant soon.

“Pricewise, I feel really good,” Lyons said. “The thing that I’m nervous about is we don’t have a kernel in the ground and we’re 65% sold.”

Many agricultural operations marketed most of their soybean production during late 2025, but significant corn inventory remained unpriced, making the recent market surge particularly beneficial for corn-focused operations, said Wesley Davis, partner at Meridian Agribusiness Advisors.

According to U.S. Department of Agriculture statistics, as of December 1, producers were holding 14% more corn on their farms compared to the previous year, along with 2% more soybeans.

In Waseca, Minnesota, Richard Guse, who cultivates approximately 3,500 acres with his brother and son, reported achieving a small profit by selling about one-third of his 2025 corn harvest to ethanol producer Guardian Energy for $4.25 per bushel this week.

“The prices have run up in a hurry,” Guse said. “It goes down a lot faster than it comes up.”