Photo: Denys Kurbatov/Shutterstock
A record rise in fuel prices is compounding increases in commodity and raw material prices. This could lead to unprecedented grocery price hikes, warned farmer Ben Riensche, owner of Blue Diamond Farming Company in Jesup, Iowa..
Riensche said the inflation seen in the supermarket is not as bad yet as it will be in the future as the growing season continues.
“If you think we’re seeing spikes in food prices right now, I think food price increases are just beginning. Y I don’t think your grocery bill is $1,000 a month. I think it can go up to $1,000 per monthRiensche said, according to Fox News.
Riensche rejected claims by the Biden administration that inflation will be transitory and warned of possible food shortages as the crisis disrupts supply chains at all levels.
“The price of my diesel has gone up. So that’s crushing my profits and the prices of my fertilizers for phosphorus, nitrogen and potassium, the three key nutrients I need for (planting),” he said, adding that his last fertilizer payment was $1 million.
High commodity prices are lowering the demand for agricultural inputs, Riensche added, saying that translates into the distribution of crops during the planting phase, resulting in a smaller harvest.
Riensche blamed Biden’s energy policies and the White House’s decision to apply tariffs on fertilizer imports.adding that the war in Ukraine aggravated the problem because that country produces a good part of the world’s fertilizers.
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