CF Industries Halts Nitrogen Fertilizer Exports to Prioritize US Farmers Amid Hormuz Crisis

CF Industries, one of the largest nitrogen fertilizer producers in the United States, has announced it is foregoing new higher-priced export orders during the 2026 spring planting season in order to prioritize supply to domestic US customers and farmers. The decision, confirmed in an official company communication published on March 27, 2026, comes as the global nitrogen fertilizer market faces a severe supply shock triggered by the closure of the Strait of Hormuz following the Iran conflict.

The Middle East region accounts for approximately 30% of globally traded ammonia and around 35% of globally traded urea, the most widely used nitrogen fertilizer worldwide. With vessel flows through the Strait of Hormuz halted due to safety concerns and the unavailability of war risk insurance coverage, Middle Eastern fertilizer exports have been largely blocked, creating acute pressure on global supply and pushing urea prices up sharply.

CF Industries stated that it has prioritized new sales to US customers supplying American farmers, turning away higher-margin export opportunities to keep more product available for the domestic market. The United States typically imports about 18% of the nitrogen fertilizer it consumes, relying heavily on foreign supply to cover the spring planting surge when demand peaks.

In addition to redirecting export volumes, the company has taken several operational measures to boost domestic availability. It delayed a multi-week repair and maintenance turnaround at its largest ammonia plant located at the Donaldsonville Complex in Louisiana, the largest ammonia production complex in the world. This delay is expected to free up approximately 100,000 additional tons of granular urea for US customers during the spring application window. CF Industries has also converted more than 90 ammonium nitrate hopper railcars to granular urea service, with 100 units planned in total, expanding logistics capacity to ship product across the country.

The company noted that its US manufacturing facilities are already running at near-maximum utilization, averaging 96% gross ammonia utilization over the past five years and reaching 97% in 2025. There is no latent capacity available to ramp up quickly, and new nitrogen plants typically require 3 to 4 years to build. CF Industries expects to start construction this year on a new ammonia plant in Louisiana, with commissioning planned for 2029.

The export diversion decision has wider market implications. By reducing export flows from one of the largest North American nitrogen producers, international buyers already affected by the Hormuz disruption face further tightness in available cargoes. European, Indian, Pakistani and Bangladeshi nitrogen producers have been forced to reduce output or shut down temporarily due to constrained LNG supply from the Middle East, amplifying the deficit in the global fertilizer trade.

In the United States, the move is intended to shield corn growers and other row crop farmers from the worst of the international price surge. Nitrogen demand peaks sharply in spring as farmers prepare fields for corn, a crop that requires substantial nitrogen inputs. Some US farmers have already considered shifting acreage from corn to soybeans, which require less nitrogen, while others may scale back specialty crops entirely if supply becomes unreliable.

CF Industries has also voiced support for broader policy measures aimed at easing the domestic supply squeeze, including the Trump Administration decision to allow additional Venezuelan fertilizer imports, the deployment of maritime reinsurance for fertilizer cargoes transiting the Middle East, and expanded domestic transportation flexibility. The company also backs initiatives proposed by The Fertilizer Institute, such as maintaining seamless fertilizer trade with Canada, redirecting LNG exports to affected producing regions, and granting temporary regulatory flexibility on transport and hours of service rules during peak weeks.

The foregone export revenue represents a significant opportunity cost for CF Industries given the elevated international price levels, but the company has framed the decision as necessary to mitigate shortages for US agriculture during a critical planting window. The duration of the export restriction is tied directly to the evolution of the spring application season and the broader resolution of the Middle East supply crisis.