What Impact Has Russia’s War Had On US Producers?
When Russia invaded Ukraine on February 24th of this year, ag trade was sent into a tizzy, thanks to not only the anxiety by volatility as well. USDA chief economist Seth Meyer said the resulting high commodity prices played a part in helping raise U.S. farm income to record levels.
“And I think we've returned back down to prewar prices which are still really elevated.”
However, the war also reduced supplies of fertilizers and energy and sent prices skyrocketing. But Meyer said American farmers were fortunate in one aspect.
“We have been somewhat fortunate to be a bit more distant to those impacts right for instance we get some of our NP and portions of our pot ash from the Canadians and so we've got supplies closer to home we're perhaps in a better energy situation than the Europeans.”
Meyer says markets will continue to watch the Ukraine war situation very closely, as “it doesn't look like it's ending anytime soon”.
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