Russia's Invasion to Impact U.S. Agriculture

Russia's invasion of Ukraine has sent shockwaves through the world's financial and agriculture markets. Many producers in the U.S. are concerned just how the conflict will impact agricultural inputs to grow crops this season.

International agricultural trade expert Matt Lantz, Vice President of Global Access at Bryant Christie, said the conflict will impact global agriculture.

“This certainly is not going to end fast or easy,” said Lantz. “Ukraine is the breadbasket of the former Soviet Union.”

Russia and Ukraine account for twenty-nine percent of global wheat exports. Since the start of February, global wheat prices have increased 60% in the lead up to Russia invasion.

“Obviously, one of the big impacts is there's not going to be a lot of trade coming from Russia into the European Union,” Matt Lantz explained. “That's going to have effects on energy prices. I know people concerned about some of the fertilizer inputs that come from that region as well.”

Russia produces thirteen percent of the global supply of fertilizer. In the last year, fertilizer prices have seen an increase of 41 to 174 percent.

Some economists predict the increase cost of fertilizer could push consumer’s grocery bills to increase $1,000 a month, all while farmers are projected to lose money in producing those foods items.

Source: Ag Information Network and Western Ag Network