But, talk to an American farmer in Iowa and he'll tell you fertilizer is available, but 70% more expensive.
So, whole US agriculture get 70% more expensive fertilizer. IDK what part of final price fertilizer is, but let's imagine product will become 35% more expensive. People will pay 35% more for food, and will demand say 10% higher salary to compensate more expensive food. And nothing change, you will just need little more dollars in country to do the exactly same things and live excatly same life.
So, the farmer in Iowa says why should I plant this Spring, at these prices, when I will lose money in autumn?
Why should farmer lose money in autumn? If this fertilizer price hike is countrywide, then all other farmers will pay higher price for fertilizer and will rise the prices in autumn. Your farmer will do the same and will get his planned profit on harvest.
Consumers will have no choice but pay more in autumn for food. Not a big deal, especially if this is known beforehand. They will demand higher salaries. Everything become more expensive if measure it in local currency. I.e. local currency become cheaper. But things will not change at all, and there is no any reason for famine.
are we looking at famine not in poor countries, but countries like USA?
Look, I live in a country where prices change often and sometimes not by funny 70%, but by 1000%. And there was no any famine.
Money is nothing. People doing their jobs are everything. If we would have been looked at fucking excahnge prices and fancy plots and paniked like you, and make decisions like you assume farmer will make, we would all be dead long ago.
Don't panic, do your job, demand required salary risie according to prices, and that's all. Moreover, often shortages is an opportunity to create a new business. Find a way to obtain a fertilizer at only 50% higher price, add your 10% and sell it at 60% more. Those farmers who had to pay 70% more, will gladly buy from you and save 10%. It's really strange to tell this to the people who are known for a high skill in enterprising.
Consumers will have no choice but pay more in autumn for food. Not a big deal
It's your opinion, not mine. I believe paying more for something as essential as food IS A BIG DEAL for many people. Perhaps not as privileged as you are. Food prices have increased steeply over the last two years due to the war in Ukraine and other reasons, and now with the situation in the Persian Gulf are about to go through the roof. In my opinion food shortages and massive increases in food prices often contribute to revolutions, as seen in the French Revolution of 1789.
Famine is one of the main causes of empire collapse, and population decline. For example, during the fall of the Roman Empire, the climate changed, which resulted in famines and pestilences.
Increased prices of fertilizers and pesticides affect food supply in several ways:
Higher production costs. Fertilizers and pesticides are energy-intensive to manufacture, so rising energy prices lead to higher production costs, which are passed on to consumers in the form of higher food prices.
Reduced crop yields. Farmers respond to scarce supplies by purchasing and using less fertilizer, which can negatively impact crop yields for the next harvest.
Supply chain disruptions. The conflict in Iran and political instability in key producing Gulf countries in the region lead to supply volatility, impacting global availability and pricing.
Increased food prices. If fertilizer costs rise by 50% per unit of crop output, total farm production costs increase, which is then passed on to grocery prices.
paniked like you
I don't know where you come up with this "panic" thing from? I'm simply showing here one of the negative consequences from this very destructive war on Iran. If you don't care it's your business, just don't accuse me of panicking. I'm not.
I believe paying more for something as essential as food IS A BIG DEAL for many people.
Only if wages for some reason is not allowed to grow accordingly. And this could be done only intentionally. And if you can't rise your income (demand higher salary, increase production or whatever), then there is completely another problem to discuss, obviously not a price hike.
I don't know, may be I'm used to some other way of things, but here, when we have an obvious price hike, wages are come higher accordingly, regardless of any long-term contracts or whatever deals between employer and employee. This is force-majeure situation, and everybody understand that. If employer will not compensate this inflation, employee will find another employer who will.
In my opinion food shortages and massive increases in food prices often contribute to revolutions, as seen in the French Revolution of 1789.
If price is higher and wages are at same level, then people will buy less food. Where this shortages will come from, then?
Farmers respond to scarce supplies by purchasing and using less fertilizer, which can negatively impact crop yields for the next harvest.
So, farmers look at fertilizer prices, think that they have to buy less fertilizer, know that crop will be lower, and prices will be higher, and does not want to acquire larger part of market doing opposite than all other farmers will do? How is this? Where is all that American spirit of using opportunities and making more money?
If I know beforehand that crops will be lower, and prices will be higher, what stops me from using this opportunity to produce more, sell more for higher price and cover all possible expenses on more expensive fertilizer? I will even take a loan to buy more fertilizer with cheap current interest rate, and then easily pay it back when currency become times cheaper, due to higher food prices.
I don't know where you come up with this "panic" thing from?
It's just my impression, sorry. I would never bother to make a post about some market prices rise, especially if it is just around 25%, not even talking about less.
I would never bother to make a post about some market prices rise, especially if it is just around 25%
Sulfur and ammonium nitrate are commonly combined in fertilizers.
Some examples of such fertilizers are:
UAN (urea and ammonium nitrate) + S. This is a liquid nitrogen fertilizer with sulfur that combines the positive qualities of three nitrogen fertilizers: ammonium nitrate, urea, and ammonium thiosulfate.
Ammonium nitrate enriched with sulfur. This is a mixture of ammonium nitrate and ammonium sulfate (30% N, 6% S).
Fertilizers containing sulfur and ammonium nitrate are used in agriculture to provide plants with nitrogen and sulfur. They are applied in the pre-sowing phase or during the autumn vegetation for wheat and rapeseed.
Just to give you an example, Russia (I guess your country) just halted ammonium nitrate fertilizer exports to prioritize domestic farmers amid the ongoing Iran conflict. It's the supply & availability of sulfur that drives the price. And we're not looking at only 25% increase, that may be just just the start.
Russia (I guess your country) just halted ammonium nitrate fertilizer exports to prioritize domestic farmers amid the ongoing Iran conflict.
You just not aware. Every year, in spring and autumn, Russia stop (or noticeably limit) exports of fertilizers, diesel and other goods important for agriculture. To make domestic prices stable and prevent speculation so farmers and agriculture enterprises could do their job without uncertainity.
Russia have its own resources for all of that stuff, but greedy producers could prefer so called "foreign markets" over domestic needs, if prices on foreign markets will rise suddenly. To force producers care about domestic needs more than about foreign one, this export limitations set. Even if there is nothing happening on the foreign markets at all. They have nothing to do with any shortages or foreign market prices, they are about certainity. It is the guaranty, that whatever happen or not happen in the world, domestic agriculture will be supplied with all they need. Those sly producers, who tried to make a profit stopping production at the time of export limits and restart it when limits are off, quckly found out that such games with a state could end very bad. That is why we now have complete food soverenity back, after it was destroyed after USSR fall.
It is just a soverenity. When the country care more about itself than about some stupid "world market" where rich idiots speculate with paper fertilizer, paper oil and other virtual stuff.
Why US, who, I'm pretty sure have more than enough resources to produce any necessary amount of fertilizers, don't want to be a sovereign state and protect its own farmers at the important time?
US also could allow devaluation of its own currency to compensate higher prices on the market. Higher prices with higher wages works perfectly, just dollar become less worthy. It's even better for US with its $39B internal + ~$150B external debt problem. It is much easier to pay out enormous debt when currency, in which this debt accounted become cheaper. If a loaf of bread will cost $1B, than any US citizen will be able to pay this fucking debt without much problem.
Why the only option for US to try to keep prices for farmers at bay is a war somewhere on the other side of Earth and certainly about protection of fucking Israel to open what was not even closed until US start to protect Israel?
Fuck Israel, close exports, protect own farmers form external problems. Isn't that what US state was created for?
So, whole US agriculture get 70% more expensive fertilizer. IDK what part of final price fertilizer is, but let's imagine product will become 35% more expensive. People will pay 35% more for food, and will demand say 10% higher salary to compensate more expensive food. And nothing change, you will just need little more dollars in country to do the exactly same things and live excatly same life.
Why should farmer lose money in autumn? If this fertilizer price hike is countrywide, then all other farmers will pay higher price for fertilizer and will rise the prices in autumn. Your farmer will do the same and will get his planned profit on harvest.
Consumers will have no choice but pay more in autumn for food. Not a big deal, especially if this is known beforehand. They will demand higher salaries. Everything become more expensive if measure it in local currency. I.e. local currency become cheaper. But things will not change at all, and there is no any reason for famine.
Look, I live in a country where prices change often and sometimes not by funny 70%, but by 1000%. And there was no any famine.
Money is nothing. People doing their jobs are everything. If we would have been looked at fucking excahnge prices and fancy plots and paniked like you, and make decisions like you assume farmer will make, we would all be dead long ago.
Don't panic, do your job, demand required salary risie according to prices, and that's all. Moreover, often shortages is an opportunity to create a new business. Find a way to obtain a fertilizer at only 50% higher price, add your 10% and sell it at 60% more. Those farmers who had to pay 70% more, will gladly buy from you and save 10%. It's really strange to tell this to the people who are known for a high skill in enterprising.
It's your opinion, not mine. I believe paying more for something as essential as food IS A BIG DEAL for many people. Perhaps not as privileged as you are. Food prices have increased steeply over the last two years due to the war in Ukraine and other reasons, and now with the situation in the Persian Gulf are about to go through the roof. In my opinion food shortages and massive increases in food prices often contribute to revolutions, as seen in the French Revolution of 1789. Famine is one of the main causes of empire collapse, and population decline. For example, during the fall of the Roman Empire, the climate changed, which resulted in famines and pestilences.
Increased prices of fertilizers and pesticides affect food supply in several ways:
I don't know where you come up with this "panic" thing from? I'm simply showing here one of the negative consequences from this very destructive war on Iran. If you don't care it's your business, just don't accuse me of panicking. I'm not.
Only if wages for some reason is not allowed to grow accordingly. And this could be done only intentionally. And if you can't rise your income (demand higher salary, increase production or whatever), then there is completely another problem to discuss, obviously not a price hike.
I don't know, may be I'm used to some other way of things, but here, when we have an obvious price hike, wages are come higher accordingly, regardless of any long-term contracts or whatever deals between employer and employee. This is force-majeure situation, and everybody understand that. If employer will not compensate this inflation, employee will find another employer who will.
If price is higher and wages are at same level, then people will buy less food. Where this shortages will come from, then?
So, farmers look at fertilizer prices, think that they have to buy less fertilizer, know that crop will be lower, and prices will be higher, and does not want to acquire larger part of market doing opposite than all other farmers will do? How is this? Where is all that American spirit of using opportunities and making more money?
If I know beforehand that crops will be lower, and prices will be higher, what stops me from using this opportunity to produce more, sell more for higher price and cover all possible expenses on more expensive fertilizer? I will even take a loan to buy more fertilizer with cheap current interest rate, and then easily pay it back when currency become times cheaper, due to higher food prices.
It's just my impression, sorry. I would never bother to make a post about some market prices rise, especially if it is just around 25%, not even talking about less.
Sulfur and ammonium nitrate are commonly combined in fertilizers. Some examples of such fertilizers are:
Fertilizers containing sulfur and ammonium nitrate are used in agriculture to provide plants with nitrogen and sulfur. They are applied in the pre-sowing phase or during the autumn vegetation for wheat and rapeseed.
Just to give you an example, Russia (I guess your country) just halted ammonium nitrate fertilizer exports to prioritize domestic farmers amid the ongoing Iran conflict. It's the supply & availability of sulfur that drives the price. And we're not looking at only 25% increase, that may be just just the start.
You just not aware. Every year, in spring and autumn, Russia stop (or noticeably limit) exports of fertilizers, diesel and other goods important for agriculture. To make domestic prices stable and prevent speculation so farmers and agriculture enterprises could do their job without uncertainity.
Russia have its own resources for all of that stuff, but greedy producers could prefer so called "foreign markets" over domestic needs, if prices on foreign markets will rise suddenly. To force producers care about domestic needs more than about foreign one, this export limitations set. Even if there is nothing happening on the foreign markets at all. They have nothing to do with any shortages or foreign market prices, they are about certainity. It is the guaranty, that whatever happen or not happen in the world, domestic agriculture will be supplied with all they need. Those sly producers, who tried to make a profit stopping production at the time of export limits and restart it when limits are off, quckly found out that such games with a state could end very bad. That is why we now have complete food soverenity back, after it was destroyed after USSR fall.
It is just a soverenity. When the country care more about itself than about some stupid "world market" where rich idiots speculate with paper fertilizer, paper oil and other virtual stuff.
Why US, who, I'm pretty sure have more than enough resources to produce any necessary amount of fertilizers, don't want to be a sovereign state and protect its own farmers at the important time?
US also could allow devaluation of its own currency to compensate higher prices on the market. Higher prices with higher wages works perfectly, just dollar become less worthy. It's even better for US with its $39B internal + ~$150B external debt problem. It is much easier to pay out enormous debt when currency, in which this debt accounted become cheaper. If a loaf of bread will cost $1B, than any US citizen will be able to pay this fucking debt without much problem.
Why the only option for US to try to keep prices for farmers at bay is a war somewhere on the other side of Earth and certainly about protection of fucking Israel to open what was not even closed until US start to protect Israel?
Fuck Israel, close exports, protect own farmers form external problems. Isn't that what US state was created for?