“Perfect storm” to blame for skyrocketing fertilizer prices
An American Farm Bureau official suggests a “perfect storm” is to blame for skyrocketing fertilizer prices.
Sam Kieffer, vice president of public affairs for AFBF, tells Brownfield trade is one of the issues.
“The fact that China has decided to not to export any of their raw materials that go into the production of fertilizer is a big factor. The price of natural gas is a big factor. The congestion of ports, railways, waterways, is a factor. Inflation is a factor.”
He says while market dynamics are often beyond the scope of the federal government, certain decisions are making matters worse.
“Whenever the Department of Interior makes a decision to stop doing mining on federal lands for raw materials that go into production of fertilizer, that’s impactful. When trading relationships with foreign countries (like) Russia, China, when they deteriorate, those impact our access to raw materials.”
He says the government’s slow reaction to supply chain problems is another reason the cost of fertilizer has more than doubled in some parts of the country.
Brownfield interviewed Kieffer during the American Farm Bureau Convention in Atlanta this past weekend.