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re: You want to know why food prices are rising?

Posted on 5/29/26 at 10:02 pm to
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
481024 posts
Posted on 5/29/26 at 10:02 pm to
quote:


We produce urea here. You know, companies like CF industries, Dyno noble, nutrien?

It's a global market.

The ME accounts for about 1/3 of globally-traded urea.

The Iran War has completely disrupted this market, which has led to a dramatic increase in the price of urea on that global market AND limits the amount of fertilizer that can be produced globally. This will mean scarcity in fertilizer, food production, etc. Those are all global markets, too, which means the globe will see higher prices for those outputs.

Unless we can produce about 10x the urea we usually produce, I don't understand why our small 2-3% of global production matters in this discussion.
Posted by RobertFootball
SC
Member since Mar 2021
2905 posts
Posted on 5/29/26 at 10:07 pm to
Food prices are rising because we have sold most of our farmland to date centers and China, we sell most of our crops to China, and the cost of farming equipment is insane.
Posted by dovehunter
Baton Rouge
Member since Sep 2014
2008 posts
Posted on 5/29/26 at 10:10 pm to
See sulfur and sulfuric acid prices. This building block chemical is at historic highs. The Persian Gulf Conflict and China are causing this and in turn significantly increases fertilizer prices. China is the#1 producer of sulfuric acid and they have basically taken their supply off the market to protect their fertilizer and food production costs.

We are still way too dependent on China and the Middle East. This Iranian conflict must be taken seriously as there are so many repercussions to its outcome.

Posted by Vacherie Saint
Member since Aug 2015
48162 posts
Posted on 5/29/26 at 10:14 pm to
This is nothing new. Their legalized pot schemes were so crippled with regulations, taxes, and bureaucracy, growers who fought for legalization were forced back underground.

LINK
This post was edited on 5/29/26 at 10:16 pm
Posted by geauxbrown
Louisiana
Member since Oct 2006
27809 posts
Posted on 5/29/26 at 10:15 pm to
Do any of you care to take a guess at what it costs to fuel tractors and other equipment for a farming season on 5,000 acres of row crop?

Now guess what it costs to fertilize those 5,000 acres.

That’s why our groceries are so high.
Posted by stlslick
St.Louis,Mo
Member since Nov 2012
15218 posts
Posted on 5/29/26 at 10:39 pm to
investment firms are the destruction of this country

they monopolize businesses, by buying parts of companies, then buying parts of companies who are connected, then actually hold 20-30% pieces of every step of these businesses supply chains.

They invested into Ray ban/? , then invested heavily into largest eye insurance company, then into company who makes glasses. They control the market. They do this in large scale in many industries.

they even destroy companies, it's pathetic. Remember when they got their asses handed to them by the robin hood guys. Then cried to Government and NYSE about the bully being bullied, and had them make changes.

the investment firms are out of control.
Posted by Craig86
Florida
Member since Oct 2012
2092 posts
Posted on 5/30/26 at 12:51 am to
I can only speak of beef because that's the industry I work in, 16,000 ranchers go out of business every month in the United States.

There are four companies that are the cause for this and they are the buyers of the cattle. Tyson, Cargill,National, JBS.

It cost x amount to raise cattle, there used to be more companies that ranchers can sell to you and find a price that would fit, now there is just four companies and they low ball the ranchers so ranchers go out of business, these four companies decide the price, they make record profit, consumers pay the price.

Two of those companies are not even American companies the price of beef is decided in Brazil specifically Rio de Janeiro. The two companies are JBS and National.
Posted by trinidadtiger
Member since Jun 2017
20538 posts
Posted on 5/30/26 at 4:04 am to

quote:

In April 2021, the Sri Lankan government abruptly banned the import of synthetic fertilizers and pesticides to mandate a rapid shift to 100% organic farming. This decision triggered a devastating agricultural collapse, with rice yields dropping by over 30% and severe losses in tea exports, ultimately fueling widespread food insecurity and national economic ruin
Posted by trinidadtiger
Member since Jun 2017
20538 posts
Posted on 5/30/26 at 4:11 am to
Iran does not export fertilizer Russia does and the US explicitly exempt fertilizer from any trade restrictions.

Posted by Mo Jeaux
Member since Aug 2008
64452 posts
Posted on 5/30/26 at 5:09 am to
quote:

Iran does not export fertilizer


Bro, are you retarded?
Posted by Houag80
Member since Jul 2019
19983 posts
Posted on 5/30/26 at 5:42 am to
Posted by trinidadtiger
Member since Jun 2017
20538 posts
Posted on 5/30/26 at 7:04 am to
quote:

Do any of you care to take a guess at what it costs to fuel tractors and other equipment for a farming season on 5,000 acres of row crop?




quote:

Direct government farm program payments are forecast to be $44.3 billion.


So about tree fiddy?
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
59950 posts
Posted on 5/30/26 at 7:11 am to
quote:

A retarded war that is pinching urea production and/or distribution.


Does allowing your bias to cloud your judgement to such a ridiculous point come naturally or do you have to work at it?

Around 80% of nitrogen used in fertilization of US agriculture comes from natural gas, only around 20% comes from urea. While the price of urea has jumped this year ( LINK), that doesn't explain price growth in prior years, so it has little to nothing to do with the Strait.

The price for natural gas is still fairly low ( LINK) despite a spike in January (which had already dissipated by February).

Meanwhile, there was a historically huge (and by a wide margin) spike in the price of nitrogenous fertilizer manufacturing, post-COVID. It came down for about a year, but never reached it's pre-COVID average and has since been rising.

If natural gas is such a dominant component and natural gas prices have been only slightly above pre-COVID levels (and nowhere near the 2000s level) then why has the nitrogen-enriched fertilizer not only stayed high but continues to increase?

That's the question you would have asked yourself, then researched, if your kneejerk reaction wasn't just to be that of a hog rolling in mud made from your own anti-Trump feces.

The Haber-Bosch process (converting N2 & H2 into ammonia) is incredibly energy-intensive. The big push under the Biden administration to increase what is essentially a methane fee on natural gas production, transmission, and storage facilities is a big culprit as has been the more strict regulations the Biden EPA put on carbon emissions (which forced the accelerated retirement of reliable baseload power generation, thus requiring utilities to spend heavily on new, transitioning generation and battery storage). Those projects are still being worked on (they didn't magically stop when Trump took office because that money couldn't magically be unspent) so those costs are still being driven down to the consumer.

Along with that, we have the ongoing glut of year after year after year of insane levels of deficit spending which continues to devalue the USD.

Posted by ronricks
Member since Mar 2021
12952 posts
Posted on 5/30/26 at 7:13 am to
quote:

100M illegal aliens aren't helping matters.


Deporting the 30 to 40 million low iq, unskilled, uneducated Illegal Immigrants we have here would:

Lower housing costs and shortages
Lower food prices and shortages
Lower healthcare costs and free up hospital emergency rooms
Free up costs and resources at our public schools
Lower traffic on our interstates and fewer accidents by uninsured Illegals which drives up insurance premiums
Basically it would free up billions in resources and time by everyone from your local public school teachers, police officers, nurses, doctors, etc.
Yes, there would be a labor/production problem in the beginning but nobody on planet earth is able to adapt and solve such issues like Americans have been able to do for 200 years. A mass deportation of all Illegal Immigrants would solve every single shortage, cost, supply, time, and resources issue this country has. The cost of everything would plummet.
Posted by bluedragon
Birmingham
Member since May 2020
9890 posts
Posted on 5/30/26 at 7:17 am to
It’s affecting fertilizer manufactures written by the idiotic “Global Warming” crowd. They had to change their manufacturing to accommodate the rancid stupidity of the left.

Another example of stupid people with their heads in the sand.
Posted by trinidadtiger
Member since Jun 2017
20538 posts
Posted on 5/30/26 at 7:48 am to
Actually Luxxotica tried to buy Ray Ban and Oakley who did not want to sell. So they bought Sunglass Hut (where 70%) of their sales were and threatened to discontinue the line.....then bought them at a discount.

FTC should have intervened there.
Posted by trinidadtiger
Member since Jun 2017
20538 posts
Posted on 5/30/26 at 7:52 am to
quote:

quote:
Iran does not export fertilizer


Bro, are you retarded?


Le me guess, you think its the Joos
Posted by Mo Jeaux
Member since Aug 2008
64452 posts
Posted on 5/30/26 at 7:53 am to
What?

So you are retarded. Shocking.
Posted by UtahCajun
Member since Jul 2021
6825 posts
Posted on 5/30/26 at 7:53 am to
quote:

We produce urea here. You know, companies like CF industries, Dyno noble, nutrien?

Still a product sold on global markets and is affected by global prices.
Posted by BHS78
Member since May 2017
4004 posts
Posted on 5/30/26 at 9:56 am to
Trump is dealing with the can that all the other Presidents kicked down the road. I will laugh my arse off if they find out that Iran's uranium came from Hillary.
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