According to NDSU Extension soil science specialist Dave Franzen (“Fertilizer prices for 2022 crop will be near or above historic highs”), “China supplies about a third of the world’s phosphate, and it has essentially banned exports through 2022.” It means that phosphate prices, which are already high, will continue to increase.
That puts the burden of supply on other countries. Both Ukraine and Russia are major exporters of agricultural products. In a market that’s “incredibly global,” U.S. farmers will feel the effects of war and sanctions. “That region of the world is a pretty significant producer of key fertilizers or key components to fertilizer, so that is definitely on the minds of farmers,” said Garrett Hawkins, the Missouri Farm Bureau president.
Sen. Roger Marshall (R-Ky.) stated the war in Ukraine will lead to a worldwide famine in the next two years. Marshall serves on the Senate Agriculture Committee.
After President Biden shut down pipelines and restricted oil exploration, it resulted in increasing oil and natural gas prices, which has resulted in higher nitrogen fertilizer prices compared to recent years. The prices are expected to increase. The U.S. is not in a great position for product expansion due to environmental concerns.
Corn is in almost everything! It can be processed in different ways to be used in all kinds of products. A typical grocery store contains 4,000 items that list corn ingredients on the label. Thirty-eight percent of the corn supply in the United States is used as feed for livestock such as beef, pork or poultry, while 29% is used for ethanol production. Only 8% is exported to other countries.
All one has to do is watch the rising commodities market regarding oil, natural gas, fuel, wheat, corn and soybeans. It foretells what will be a continuing rise in grocery bills and transportation costs. The wake-up call has been given regarding the Biden administration’s inability to manage the economy and the supply chain. Rapidly rising food prices, $5 gas and Infant formula shortages all clearly represent a soon-to-be-dead canary in the mine and famine in the United States.