Goods and services around the country are becoming increasingly more expensive, but farmers may be among the hardest hit as inflation, supply chain issues, and Russia’s invasion of Ukraine are expected to send food prices soaring even higher.
That impact is being felt by farmers around the country.
“The cost of fertilizer is up as much as 500% in some areas,” said Indiana Farm Bureau President Randy Kron. “It would be unbelievable if I hadn’t seen it for myself as I priced fertilizer for our farm in southern Indiana. Fertilizer is a global commodity and can be influenced by multiple market factors, including the situation in Ukraine, and all of these are helping to drive up costs.”
Last week the Wall Street Journal reported that a shortage of fertilizer is causing farms in the developing world to fail, threatening food shortages and hunger. Ironically, the lead photo is of mounds of phosphate fertilizer in a Russian warehouse.
Modern synthetic fertilizers are typically made using natural gas or from phosphorous-bearing ores. The former provides the nitrogen that is critical to re-use of fields in commercial agriculture. They constitute more than half of all synthetic fertilizer production.
So what happens when oil and natural gas extraction are crippled in industrialized nations? One likely outcome is that the fertilizer manufacturing industry is also crippled, leaving both large commercial growers and smaller farms around the world starved of a key substance they need to grow food for hungry populations.
The Biden Administration announced Monday it will spend $1 billion in American Rescue Plan Act funds to increase independent meat and poultry processing capacity.
The administration will invest $375 million on independent processing plant projects that fill a need for diversified processing capacity, spend up to $275 million in working with lenders to increase availability of loans, particularly to underserved communities, for independent processors, and spend $100 million to back private lenders investing in independently owned food processing and distribution infrastructure to move product through supply chain.
It will spend and additional $100 million to support training, safe workplaces and jobs in meat and poultry processing facilities, $100 million in reducing overtime and holiday inspection costs for small and very small processing plants, and $50 million to provide independent business owners and producers with technical assistance and research and development.
Hogs born Jan. 1, 2022, or later are subject to California’s Prop 12.
Some Iowa agricultural leaders have criticized the law, which prohibits the sale of pork from hogs that are the offspring of sows that were raised in pens with less than 24 square feet of usable floorspace per pig.
California accounts for about 15% of the U.S. pork market, the National Pork Producers Council said in a September news release. The NPPC is asking the U.S. Supreme Court to determine Prop 12’s constitutionality.
Experts are warning that the dual energy and supply chain crises could serve to significantly disrupt global crop production, potentially disrupting food supplies for poorer consumers in particular.
Those ongoing crises are helping to temporarily decrease the global supply of fertilizer, a critical component in much of world agriculture and one that allows farmers to grow considerable quantities of crops in much of the world’s soils.
The fertilizer shortage is “impacting food prices all over the world and it hits the wallets of many people,” Yara International Director Svein Tore Holsether told the BBC this week.
One of the most frequently raised arguments against capitalism is that it is the primary driver of environmental pollution and climate change. But if we compare Yale University’s ranking of countries with the highest environmental performance with the Heritage Foundation’s Index of Economic Freedom, a very different correlation emerges.
For more than 20 years, Yale University has been publishing the Environmental Performance Index (EPI) and ranking countries according to their environmental health and ecosystem vitality. The EPI uses 32 performance indicators across eleven issue categories:
Some of the world’s top emitters of methane haven’t signed a global effort to curb how much of the greenhouse gas is emitted by 2030.
The three countries – China, Russia and India – that produce the most methane emissions in the world haven’t signed onto the pact, which has been spearheaded by the U.S. and European Union ahead of a major United Nations climate conference. The nations that have signed the agreement represent nearly 30% of global methane emissions, the State Department said Monday.
The U.S. and EU unveiled the Global Methane Pledge on Sept. 18, which they said would be key in the global fight against climate change. The U.K., Italy, Mexico and Argentina were among the seven other countries that immediately signed the agreement last month.
President Joe Biden has proposed amending the inheritance tax, also known as the “death tax,” but farmers around the country are raising concerns about the plan.
In the American Families Plan introduced earlier this year, Biden proposed repealing the “step-up in basis” in tax law. The stepped-up basis is a tax provision that allows an heir to report the value of an asset at the time of inheriting it, essentially not paying gains taxes on how much the assets increased in value during the lifetime of the deceased. This allows heirs to avoid gains taxes altogether if they sell the inheritance immediately.
Under Biden’s change, heirs would be forced to pay taxes on the appreciation of the assets, potentially over the entire lifetime of the recently deceased relative.
China’s effort to unseat America as the world’s economic superpower has a new tactic: It has bought up more than 200,000 acres of U.S. farmland. And while there is bipartisan support for legislation to slow down Beijing’s acquisitions, Democrats have added a new wrinkle.
Rep. Dan Newhouse (R-Wash.), who is leading the legislative charge, says congressional Democrats have removed all references to the communist government of China in an amendment to an agricultural spending bill that originally prevented the Chinese Communist Party’s purchase of American farmland.
Two dairy farms in Arizona soon will be producing more than milk.
Renewable energy company Avolta has begun construction on a renewable gas project in Buckeye that will turn the tons of manure produced daily from the more than 25,000 Holstein dairy cows at Buttermilk farms into biogas.
The manure will be sealed underground and “digested” until methane can be created and extracted. The gas is processed and pumped into a nearby Southwest Gas pipeline, providing the farms with an additional revenue stream and keeping the methane gas out of the atmosphere.
A federal judge in Florida temporarily halted President Joe Biden’s $4 billion debt relief program exclusively for farmers of color, saying in a Wednesday order that the program was racially discriminatory.
U.S. District Judge Marcia Morales Howard sided with Scott Wynn, a Florida-based white farmer who sued to block the program in May. The Department of Agriculture (USDA) program was originally passed in March as part of Biden’s $1.9 trillion coronavirus relief package, with the intention of providing relief to “socially disadvantaged farmers.”
“Section 1005’s rigid, categorical, race-based qualification for relief is the antithesis of flexibility,” Howard wrote. “The debt relief provision applies strictly on racial grounds irrespective of any other factor.”
A federal judge Thursday afternoon suspended a loan forgiveness program that issues relief to farmers and agricultural workers of color.
Judge William Griesbach of Wisconsin’s Eastern District handed down a temporary restraining order after the conservative Wisconsin Institute for Law and Liberty (WILL) filed a lawsuit in April. The group alleged in its announcement that President Joe Biden’s relief program was unconstitutional and that white farmers should have been included in the loan program.
“The Court recognized that the federal government’s plan to condition and allocate benefits on the basis of race raises grave constitutional concerns and threatens our clients with irreparable harm, said Rick Esenberg, WILL’s president and general counsel, in a press release Thursday. “The Biden administration is radically undermining bedrock principles of equality under the law.”