A new report published by Texas A&M Agriculture and Food Policy Center (AFPC) provides insight and analysis on fertilizer prices and its potential impact on U.S. farms. The AFPC report utilized its representative farms under the farm policy simulation model to determine anticipated economic impacts on various farms throughout the United States as they cope with spiking fertilizer costs. The report did not consider impacts of supply shortages, but did closely examine how price increases will impact profit potential for a wide range of farm types, including those in Arkansas. Current price increases facing farmers for fertilizer products are far exceeding other points of record inflation experienced in across the U.S. economy.
The report indicated substantial reductions to farm profitability due to higher fertilizer prices and noted that current safety-net policy of the federal government was not designed to provide assistance for reductions in net farm income due to increased costs of production. However, the report did indicate that the high input costs were in-part due to supply chain disruptions resulting in the global Covid-19 pandemic. It noted that federal aid already authorized and appropriated for Covid-19 might provide some opportunities for new aid should policy makers take such action.
More below:
https://agrilifetoday.tamu.edu/2022/01/12/report-analyzes-record-high-fertilizer-prices/