Shortages of Fertilizer
We’ve heard the term “perfect storm” when it comes to circumstances where a number of negative factors come together to adversely affect an outcome. That is the case when it comes to the world’s supply of the products needed to produce fertilizer. It turns out that it’s estimated that 40% of the world’s exports of potash come from Russia and Belarus. Potash is a critical component of most fertilizers produced.
The U.S. gets much of its fertilizer components from Canada, but with the sanctions on Russian exports, many countries are going to Canada for potash and other products, thus putting pressure on the prices U.S. manufacturers have to pay and then pass on to consuming farmers. Yes, our farmers can push to perform more crop rotations so the plants draw less of some nutrients from the soil, but that can only help so much.