Prices for everything from fertilizer to animal feed to labor are skyrocketing.
(Bloomberg) — The cost to grow food is soaring according to a new US report, a sign that inflation and its worst effects, such as hunger, aren’t over.
Everything that farmers use to cultivate crops from fertilizer to feed and labor are skyrocketing in price. Production costs are estimated to rise by $66.2 billion or 18% in 2022, the most ever, according to the US Department of Agriculture.
The boom in America’s farming costs comes as the world increasingly turns to the US for supplies as the war in Ukraine roils commodity markets and disrupts crucial grain shipments from the Black Sea, one of the world’s breadbaskets. Global food prices have touched records in recent months as inflation ripples through economies and levels of hunger are on the rise.
The biggest leaps in costs come from fertilizer and feed for raising animals. Corn and wheat prices remain elevated with Black Sea exports still in turmoil. Fertilizer markets have surged on worries that sanctions over the Ukraine war would hurt shipments from Russia, a major exporter. Europe’s energy crunch is also forcing some plants to close or curtail production.
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