The American Conservative: shortage of fertilizers from Russia will cause problems for US farmers
The American Conservative issued forecast “reckoning for all” because of the sanctions against Russia. It noted that the shortage of fertilizers and refusal of the U.S. administration to increase oil production will cause problems for farmers.
The authors of the article emphasized that the lack of grain in the world pales in comparison with the shortage of fertilizers, which “not only decides what the harvest will be, but also determines the world food prices.
Russia is the largest exporter of nitrogen fertilizers, so after sanctions were imposed, countries were forced to turn to alternative sources. U.S. President Joe Biden has promised to allocate $250 million to stimulate the domestic market, but the specifics of synthetic fertilizer production are unlikely to bring immediate benefit, writes the publication.
“The most recent U.S. fertilizer price index – the weighted average price of natural phosphate, phosphorus, potash and nitrogen – was $254 and 97 cents, more than double its 2021 level” the publication notes.
The American Conservative quotes Veronica Nye, senior economist at the Federation of American Farmers, as saying. She stated that chemicals and fertilizers make up the largest share of household expenses, about 18 percent of the farm’s total budget.
The publication stressed that the ability to import fertilizer into the U.S. is limited, and the industry doubts that its own production can be ramped up fast enough. Even if supplies from Russia return to pre-sanctioned levels, there is no guarantee that U.S. farmers will be able to cope with the difficulties and costs, the article said.
Earlier, UN Secretary General António Guterres proposed easing restrictions on the export of potash fertilizers from Russia and Belarus in exchange for the passage of ships with grain from Ukraine.