Between Russia’s invasion of Ukraine and President Joe Biden’s energy policies, it’s no wonder gas prices are reaching record highs.
Little noticed, however, is how increasing fuel costs will affect farming in America. Larry Miller, like many farmers, is concerned about the rising cost of fuel. “It really gets scary to see that, that kind of a cost going into these fuel tanks.”
The cost of the fuel can be anywhere from 5% to 10% of a farmer’s budget. If the cost to harvest a field outweighs what the crop will go for, or if there is no demand, the crops will not make it to market. This happened extensively during the pandemic due to food not being processed as quickly as needed.
The Bureau of Labor Statistics reported that the average cost of food has increased by 7% in just one year. Unfortunately, that number isn’t going to go down any time soon. The worldwide fertilizer market has watched the Russian invasion of Ukraine with horror. Belarus, a close Russian ally, is the third-largest producer in the world of potash, but it is landlocked between the two warring nations.
That matters because many foods are grown using potash. The benefits of using potash include helping with root growth, resistance in droughtlike conditions, and aids in photosynthesis, and the benefits go on and on. Prices for potash had already hit a 13-year high in December, at $650 per metric ton.
Salida AG, a Californian-based agricultural company, told me that it “slid under the wire with this fertilizer issue. Our potash season ended just before the cost started rising exponentially. Across the board, we have seen fertilizer costs increase 30-50%.”
The Canadian rail strike at Canadian Pacific Railway is also threatening the world fertilizer market. Roughly 3,000 workers are threatening to strike on March 16. Canada is one of the biggest producers of potash, and if the strike happens, this would be a knockout punch to the farming industry.
What does all this mean?
Well, it’s likely to get even more difficult for people just trying to put food on the table.
Taylor Hunt attends Washington State University and is pursuing a degree in agricultural engineering.
