According to Oxford Economics, an independent economic advisory firm, in late March the price of the two main fertilizer ingredients, ammonia and urea, spiked20% and 50%respectively in response to disruptions in the Persian Gulf.
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Now that Iran has established a blockade and tolling system in the Strait of Hormuz in response to the United States and Israel attacking the country, large amounts of urea, ammonia, phosphates, and sulfur, critical components for fertilizer, are locked out of agricultural supply chains.
While the blockade is not an issue for Russia, the world’s largest exporter of urea, it is a significant issue for Qatar, Oman, and Saudi Arabia, Persian Gulf states currently prevented from exporting urea to market. India, Brazil, and the US are dependent on urea from the Gulf, while China, India, and the US depend on sulfur and ammonia exports from the region.
“The timing of the disruption makes the situation especially acute,” explains theKiel Institute, a European research institute for global economic affairs. “March and April are peak months for fertilizer application in the Northern Hemisphere planting season. Although some market adjustment may occur over time, structural damage to supply chains and agricultural production is likely to persist.”
On March 9, the American Farm Bureau Federation sent a letter calling on President Trump to ensure safe passage of fertilizer shipments to the United States to stabilize costs and delivery ahead of spring planting season for farmers, theDetroit Free Pressreported.
Asurveyconducted by the federation in early April “shows 70% of respondents say fertilizer is so expensive that they will not be able to buy all the fertilizer they need.” More than 5,700 farmers, both Farm Bureau members and non-members, from every state and Puerto Rico took part in the survey.
The analysis reveals that almost 8 in 10 farmers in the southern U.S. say they can’t afford all needed supplies this year, followed by the Northeast and West at 69% and 66%, respectively, compared to 48% of the farmers in the Midwest.
Trump is oblivious to the fact his war, at the behest of Zionist Israel, is the reason farmers cannot buy the fertilizer required for spring planting. Instead of admitting the war and Iran’s blockade are responsible, he attempted to shift blame.
Source: Global Research
