LINCOLN COUNTY, Tenn. (WHNT) — The latest industry to take a hit from supply chain issues – farming.
With a global fertilizer shortage, farmers across the world are having to shift tactics to make sure they have a good crop to harvest and sell. However, the impacts of the shortage will go far beyond what happens on farms.
Josh Ogle co-owns D&J River Farms, the multi-generational family business that grows cotton, corn, soybeans, and wheat. Thankfully for him, they were ahead of the supply chain curve.
“We were fortunate enough to be able to start a little earlier this year in the spring and get our stuff done a little quicker,” Ogle told News 19.
Prices for the ingredients that go into synthetic fertilizers shooting up. According to Green Markets, prices have nearly tripled from the start of the pandemic.
“I guess when I bought in February… of ’21 for that crop so this year, we tripled in nitrogen prices, and we pretty well doubled in potash and phosphate and it’s even higher since then probably another 15%, maybe 20% on certain elements,” Ogle continued.
The Russian invasion of Ukraine, supply chain issues caused by storms and high natural gas prices are contributing factors.
“Of course, this is a global economy and a global market we’re in now,” Ogle said. “So not only is it me that it affects, it’s all over the world.”
Ogle says from fertilizer for crop production to what you see on the shelves at the store – every aspect is intricately tied together.
“The corn price will affect what the chicken is going to cost in the store, what the beef may cost in the store,” Ogle concluded. “And then you know that can also take a turn to fit with the milk is going to cost in the store and unfortunately for some of these farmers on the back end, we’re not seeing that much of an increase as what the stores are going to be able to put across it and just because of the shortages.”
Ogle said the bottom line is it’s a global market and we are all in this together.