Farmers described having to pay cash for seeds, fertilizer, pesticides, labor, irrigation and other costs while waiting for the government to settle payments for wheat already delivered.

A farmer in the Sanjabi area of the western province of Kermanshah told Iran International that the delays were making it increasingly difficult to cover essential expenses.

“Most of my farming expenses have to be paid in cash, while the government pays us our own money in installments,” the farmer said.

Another farmer in western Iran said inflation and the rial’s depreciation meant that delayed payments were worth considerably less by the time they arrived.

“By the time they pay us everything they owe for our wheat, gold and dollar prices and inflation will have multiplied, and the value of our money will have fallen sharply. Which official cares about the difference?” the farmer told Iran International.

Even when farmers eventually receive the full amount originally agreed, the money may buy considerably less than it would have when they delivered their crop.

Between 10% and 30% of payments owed to wheat farmers remain outstanding in different provinces, according to Ghadam Borbor, deputy head of Iran’s National Wheat Foundation.

Rial depreciation cuts dollar value of wheat payments by 36%

Earlier this year, the government set its guaranteed wheat purchase price for the previous agricultural year at between 475 million and 495 million rials per metric ton, depending on the type and quality of the crop.

At the time, the dollar traded at 1,663,700 rials on the open market, making the highest guaranteed price equivalent to approximately $298 per ton.

At the current open-market rate of about 2.615 million rials to the dollar, that same 495 million-rial payment is worth about $189, a decline of roughly 36%.

The figures illustrate how the depreciation of the rial has reduced the dollar value of farmers’ earnings while the government’s nominal debt has remained unchanged.

The actual loss of purchasing power depends on changes in domestic prices and agricultural production costs, but farmers say they are increasingly unable to afford supplies needed for the next harvest.

Billions owed as government cites administrative delays

Borbor said the new 1405–1406 agricultural year (2026–2027) had begun without a guaranteed wheat purchase price and with preparations for autumn planting still incomplete.

Iran’s government says it has settled most of its debts to wheat farmers but has not announced a deadline for paying the remainder.

According to figures released by the Targeted Subsidies Organization, the government body responsible for administering subsidy payments, on October 9, approximately 3,920 trillion rials ($1.50 billion at the current open-market rate) of the 4,100 trillion rials ($1.57 billion) owed to wheat farmers had been paid.

That left about 180 trillion rials ($69 million) outstanding.

Hassan Norouzi, head of the organization, said some payments were being held up by discrepancies between its records and those of the Ministry of Agriculture.

He said the remaining payments depended on correcting information in the government’s administrative system.

For farmers who need the money for autumn planting, that means continuing to cover new production costs while government agencies resolve the discrepancies.

The Ministry of Agriculture has set wheat seed prices at between 720,000 and 756,000 rials ($0.28–$0.29) per kilogram, at least 45% above the highest guaranteed government purchase price of 495,000 rials ($0.19) per kilogram for harvested wheat.

Although seeds prepared for planting differ from ordinary harvested wheat, the price difference illustrates the financial burden facing farmers as they prepare for the new season.

A farmer in Nourabad told Iran International that the situation was becoming increasingly difficult.

“We have to buy seeds with cash, even though the government owes us money. Under these circumstances, what motivation is left to continue?” the farmer said.

Farmers turn to middlemen for immediate payment

The payment delays have prompted some farmers to sell their wheat to middlemen at prices below the government’s guaranteed purchase rate.

Peyman Alemi, head of Iran’s Chamber of Agricultural Guilds, said farmers urgently needing cash were selling wheat to intermediaries for between 380,000 and 440,000 rials ($0.15–$0.17) per kilogram.

That compares with the government’s highest guaranteed purchase price of 495,000 rials ($0.19) per kilogram.

The difference means farmers accepting lower prices for immediate payment are sacrificing part of their potential income to cover mounting expenses.

Alemi warned that continued delays could discourage farmers from selling wheat to the government and potentially reduce domestic production in the next agricultural year.

Lower government purchases or falling domestic wheat output could complicate efforts to maintain strategic wheat reserves and increase reliance on imports, particularly as the rial’s depreciation raises the cost of purchasing grain from abroad.

Bread prices climb despite unpaid farmers

The payment delays also come as bread prices rise across Iran, adding to the financial pressure on households.

Under the latest officially approved prices in Tehran, a loaf of sangak, a traditional Iranian flatbread, costs 155,000 rials (about $0.06), while barbari bread costs 100,000 rials (about $0.04).

Prices are considerably higher at bakeries operating outside the subsidized pricing system.

A review of prices recorded in October showed some varieties of sangak selling for as much as 500,000 rials ($0.19) in Tehran and 400,000 rials ($0.15) in the northeastern city of Mashhad.

The increases mean consumers are paying more for bread while some farmers who produced the wheat are still waiting for their earnings.

However, the current rise in bread prices cannot be directly attributed to delayed government payments, and the potential effects on future wheat production and imports have yet to materialize.

New planting season begins without guaranteed prices

Farmers face further uncertainty because the government has yet to announce the guaranteed purchase price for wheat from the current agricultural year.

The lack of a confirmed price makes it harder for farmers to calculate expected income and decide how much they can afford to spend on the new crop.

Many are therefore beginning the new planting season with part of the money for their previous harvest still unpaid, production costs that must largely be met in cash and no certainty over what the government will pay for their next crop.

Even if the government settles all outstanding payments, farmers may not recover the purchasing power lost during months of delays or the opportunities missed to buy agricultural supplies earlier.

Their previous wheat harvest has already been delivered to government storage facilities, but some producers are still waiting to be paid.

Agricultural officials warn that continued delays could undermine farmers’ willingness to plant wheat or sell it to the government, potentially creating further challenges for Iran’s domestic wheat supply.