America Is About To See a MAJOR Spike In Prices For These Goods
(TruthandLiberty.com) – America is learning a lesson about economics and the manufacturing of fertilizers farmers need to grow food crops. Countries around the globe are experiencing high inflation. Economists say soaring energy and food prices are driving much of the sky-high inflation impacting Americans, and it’s not likely to go away soon. Part of the reason is that fertilizers are low in supply and high in cost due to the demand. The combination could severely hurt crops this growing season.
Even before inflation devastated the US economy, supply chain issues contributed to rising fertilizer costs. With distributors short on the much-needed food supplies, farmers reduced the amount of corn and wheat they planted this year. The impact on food prices could be significant for the rest of 2022 and beyond.
Why Is Fertilizer Manufacturing Struggling?
According to the World Bank, fertilizer prices have shot up 30% since the beginning of the year. That jump follows an 80% increase in fertilizer prices in 2021. Numerous factors are causing the explosive issue. They include the cost of manufacturing fertilizers, supply disruptions caused by sanctions on Russia, the restrictions on Ukraine (a world leader in fertilizer production) because of Russia’s aggression, and China’s export restrictions.
So, how bad is it? Europe is struggling as natural gas prices rise, and a cutback in natural gas equates to a cutback in ammonia, vital to nitrogen-based fertilizers. In China, coal prices are soaring, causing fertilizer manufacturers to cut back on their ammonia production, which experts say is impacting urea prices. Additionally, high costs of sulfur and ammonia are driving up phosphate fertilizer prices.
All combined, it’s a calamity in the making.
US Food Prices Expected To Continue Exploding in Price
If you’ve visited the grocery store, it’s evident prices are going up on everything you buy. Experts say farmers in Michigan are facing their most significant crisis in 13 years. The problem could cause agriculture production to fail significantly, directly impacting the food supply chain and prices.
In February, reports indicated tight crop supplies would keep inflation high in 2022. Farm analysts expected farmers to plant less wheat, corn, oats, barley, and canola. Some of the challenges are due to the fertilizer issue, and some are due to a lack of seeds to plant crops. Suppliers say fertilizer and seeds have sold out, and crops will be tight this year.
The growing season is just getting underway. As farmers suffer through the 40-year inflation, it’s bound to impact dining tables and bank accounts across the United States and the rest of the world.
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