by George Jared (gjared@talkbusiness.net)
A major issue that plagued Arkansas farmers in 2022 was the steep rise in input costs. Part of the problem started in February 2022 when Russia invaded Ukraine. The invasion led to a steep increase in fertilizer costs and fuel costs.
Russia exports about 19% of the world’s potassium and exports about 15% of the world’s nitrogen, according to the United Nations. The country also produces about 14% of the global market’s phosphorus. All of these inputs are found in fertilizers.
Natural gas is a key component in fertilizer production and Russia is the second leading producer in the world. As 2023 continues to unfold, the dynamics that pushed input costs higher for farmers are not projected to go down in most sectors, according to the University of Arkansas System Division of Agriculture’s Enterprise Budget forecasts. The forecasts are a tool that farmers can use to project what costs could be during the upcoming growing season.
https://talkbusiness.net/2023/03/arkansas-farmers-to-see-higher-input-costs-continue-in-2023/
