Maine
Russia sanctions play role in soaring fertilizer prices for Maine farmers
Farmer Daniel Corey watched diesel gasoline for his tools high $5.50 per gallon this spring and alternative components took weeks to reach, however one thing else on the coronary heart of farming particularly worries him.
That’s fertilizer, which is in brief provide.
Costs have doubled over the previous yr and promise to double once more by subsequent yr’s rising season, the results of a number of components from geopolitics to produce chain points driving up prices and uncertainty for farmers in Maine and all over the world.
Most fertilizers in Maine come from Canada, though uncooked supplies are sourced from all over the world. Farmers ought to be capable to get sufficient this yr, however greater prices for diesel gasoline, electrical energy and machine components are stressing farmers. Corey, CEO of Daniel J. Corey Farms in Monticello, doesn’t plan to plant something additional this yr so he doesn’t lose cash.
“For anyone in agriculture on this state, this yr would be the costliest crop they’ve ever grown,” Donald Flannery, government director of the Maine Potato Board, mentioned. “Extra money spent on the crop has to get handed on someplace, and a few shall be to the patron.”
Maine imported $28.5 million of all kinds of fertilizer merchandise from all sources worldwide in 2021, up from $19.5 million in 2020, in response to WISERTrade, which collects commerce knowledge. Imports declined in January and February of this yr to nearly $1.5 million for each months, down from $2.4 million the identical two months of 2021.
Fertilizer imports from Canada have been within the first two months of this yr, down by greater than half in contrast with the identical interval final yr. Maine’s imports from Russia, a serious fertilizer exporter, greater than tripled within the first two months of this yr, however that was earlier than sanctions attributable to President Vladimir Putin’s invasion of Ukraine.
Whereas fertilizer sellers mentioned sanctions on Russia are already beginning to pinch the fertilizer provide, costs had already began to climb since fall 2020, when Hurricane Ida idled a multinational agricultural fertilizer firm in Louisiana. It was sluggish to restart, triggering shortages and worth rises.
“The Russia sanctions are including to the upper price and inflicting uncertainty available in the market,” mentioned Danny Blanchette, common supervisor of Grand Falls Agromart in Grand Falls, New Brunswick, a big provider of fertilizer to Maine farmers. “Individuals can pay extra for fertilizer this yr, however they are going to get it.”
For Corey, who farms greater than 1,100 acres with 50 kinds of seed potatoes, the value of fertilizer has risen from 25 cents per pound to 40 cents per pound over the previous yr, or about $540 per acre.
One other farmer mentioned the marketplace for fertilizers is international and the sanctions on Russia are placing a better invoice onto Maine farmers.
“I’m lined for this yr, however with the sanctions on Russia, subsequent yr may be a giant drawback,” mentioned Ryan Guerrette, president of Guerrette Farms in Caribou, who farms 1,200 acres of potatoes.
He mentioned fertilizer was $120 per ton a pair many years in the past, however he not too long ago paid $700 per ton, which is on the low facet.
Escalating prices, together with dearer gasoline to run the processes that make fertilizers and better costs for transoceanic delivery of fertilizer parts, are creating extra worth uncertainty for fertilizers.
“We are able to’t assure any future pricing,” mentioned Tami Van Gaal, managed surroundings enterprise chief at Griffin Greenhouse & Nursery, a horticulture distribution firm with a location in Grey.
That creates extra uncertainty for farmers. Corey mentioned he doesn’t know which provides he’ll be getting when with ongoing provide chain delays and shortages. All of it’s amplified by Maine’s comparatively quick rising season.
He and others fear in regards to the U.S. reliance on overseas items like fertilizer which might be so key to its economic system and in regards to the potential for meals shortages.
“Think about having a complete agricultural society within the U.S. that we will’t farm with out different nations supplying this fertilizer,” he mentioned. “That’s scary. We must always have extra U.S. fertilizer corporations.”