OMAHA, Neb. (KMTV) – The crisis in Ukraine and Russia is causing a ripple effect of problems across the world, including the Heartland.
Commodity prices are rising, which has negative effects on the agricultural and manufacturing sectors.
Wheat, corn and soybeans are all crops whose prices have increased.
“Ukraine is a breadbasket in this region: it is a big producer of wheat, a big exporter of wheat. When war disrupts the Black Sea ports from which this wheat is shipped. This supply chain disruption translates into higher prices elsewhere. people will be crying out for the produce they need,” said farmer Ed Morse of Council Bluffs.
Russia is an exporter of various types of fertilizers, and Morse warns of a potential price hike. Already, corn has seen a price increase of around 40% since the start of the year.
“It’s obviously a period of low demand for fertilizer because it’s too early. But we expect these prices to stay where they were. Which is more than double what they were a year ago. year,” Morse said.
Morse is a cattle rancher who has seen increases in beef prices but fears supply chain disruptions will impact export markets, keeping prices lower.
“We also face a complex issue of high feed costs which could lead to further liquidations in the beef cattle herd. These additional liquidations are putting more beef on the market. “Increase associated with beef prices. But that doesn’t help cover all of the higher corn, fuel and input costs needed to produce those cattle,” Morse said.
“I think it’s going to have a negative impact. I think, and the reason I say that, is the increased costs but also the potential for trade barriers, trade restrictions,” said Ernie Goss, professor in economics at Creighton University.
This overseas crisis creating ripple effects on farmland and homes says a lot about Goss.
“We’re of course talking about volatility — the volatility that Nebraska is experiencing — we’re going to see that in spades going forward,” Goss said.
“I think Europe is going to have to reevaluate its dependence on Russia. It has proven to be an unreliable ally,” Morse said.
Since that dispute, wheat prices have risen from $7 to $9 a bushel and soybeans have risen from $12 to about $16 a bushel – all comparable increases for all of these commodities.
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