Idaho Consumers Brace For Recession Driven Price Increases
Idaho farmers are the economic backbone of our state. There are no days off from farming, and every day is a struggle. In the last few years, Idaho Farmers have endured rising fuel prices, drought conditions, and rising costs of fertilizers. Like any business, once the cost of goods goes up, the farmers have no choice but to pass those costs to the consumers.
In other words, our food prices are about to rise more than they are now. Farmers are not the only ones who feel the pain of rising fuel prices. The inflation rate is at a forty-year high.
The Biden Administration is so concerned about the rising costs possibly wiping out family and corporate farms they've decided to address the problem by sending millions in aid to farmers.
The USDA announced in a release that 500 million dollars would be made available to American farmers and others to produce fertilizer in this country. The instability in Europe spurred by the Russia / Ukraine war has spiked the price of fertilizer used worldwide.
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack expanded on the newly announced program. "Recent supply chain disruptions have shown just how critical it is to invest in the agricultural supply chain here at home. The Fertilizer Production Expansion Program is one example of many Biden-Harris Administration initiatives to bring production and jobs back to the United States, promote competition and support American goods and services."
Industry experts say that Hurricane Ian's damage to Florida will impact the cost of food prices in Idaho and across the country. The state was hit with a historic hurricane this week that has damaged crops and several fertilizer plants. Fox Business reported that one of the nation's largest plants had been shut down due to Hurricane Ian.
"It's something like 50% of granular fertilizer is coming from that area. It's a very high percentage, huge concentration," Fox News contributor and economist Brian Brenberg said following Flock's report. "So you think about food prices, I think that's the price that's going to matter most when we get into the midterms. Everybody's watching that."
We will continue to update you on this story as it develops.
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