Arkansas farmers to see higher input costs continue in 2023

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/

Nearly 113 million holiday travelers expected in U.S. as fuel prices continue to fall

KUAR | By Jeff Della Rosa/ Talk Business & Politics

According to the AAA, 112.7 million people are expected to travel at least 50 miles from home in the U.S. between Friday and Jan. 2. It comes as Arkansas is experiencing some of the lowest gasoline prices since May 2021, while cold weather and snow might affect holiday travel across the state.

According to the AAA, about 102 million people are expected to drive to their holiday destinations this year, up about 2 million motorists from the 2021 holiday season. The number of 2022 motorists is in line with 2018 levels but down from 2019, when a record 108 million motorists drove to their holiday destinations.

Statewide, the average price for a gallon of regular gasoline is $2.69, down from $3.16 in November and $2.92 at the same time last year. Nationwide, the price is $3.14, down from $3.68 in November and $3.30 at the same time last year.

https://www.ualrpublicradio.org/local-regional-news/2022-12-20/nearly-113-million-holiday-travelers-expected-in-u-s-as-fuel-prices-continue-to-fall

Idrivearkansas.Com/Arkansas Department Of Transportation

Traffic flows on Interstate 630 in Little Rock on Tuesday ahead of extreme cold weather forecast later in the week.

Grain, fertilizer, fuel prices impacted by Russian war in Ukraine

by George Jared (gjared@talkbusiness.net)

Russia’s invasion of Ukraine has impacted many economic sectors on a global scale and agriculture will be directly affected on several fronts. Grain markets have become more volatile and high fertilizer and fuel prices are going even higher.

Russia and Ukraine account for about 29% of global wheat trade and Russia is the world’s top wheat exporter. Ukraine accounts for about 16% of global corn exports. Scott Stiles, agricultural economist for the University of Arkansas System Division of Agriculture, said the situation will offer both opportunities and hardships for growers in Arkansas and elsewhere.

Oil prices traded at more than $122 per barrel on Monday (March 7) after it spiked for a short time to $130 per barrel. Gas prices inched towards all-time highs across the U.S. at $4 per gallon. Diesel prices are even higher and several analysts predict oil could rise to $200 a barrel before the conflict is over.

https://talkbusiness.net/2022/03/grain-fertilizer-fuel-prices-impacted-by-russian-war-in-ukraine/

Report: Rising crude oil production should lead to lower fuel prices

by Jeff Della Rosa (JDellaRosa@nwabj.com)

U.S. crude oil production is expected to exceed pre-pandemic levels in 2023, and as production and inventories rise, fuel prices are expected to fall, according to the U.S. Energy Information Administration (EIA). The production is expected to average 12.4 million barrels per day in 2023, surpassing the record high set in 2019.

The EIA released Tuesday (Jan. 11) the January Short-Term Energy Outlook which projects that U.S. crude oil production will rise for nine consecutive quarters, from the fourth quarter of 2021 through 2023. Also, OPEC is expected to increase crude oil production to 28.9 million barrels per day in 2023, up from an average of 26.3 million barrels per day in 2021.

U.S. commercial crude oil inventories will rise to 465 million barrels at the end of 2023, which is about 11% higher than the inventories at the end of 2021.

https://talkbusiness.net/2022/01/report-rising-crude-oil-production-should-lead-to-lower-fuel-prices/