- Farm economics threatened by nitrogen shortfalls
- No guarantee that farmers will increase sown acreage
The Food and Agriculture Organization of the United Nations (FAO) recently revealed that its FAO Food Price Index had hit its highest level since its inception, reflecting new all-time highs for vegetable oils, cereals and meat sub-indices.
That won’t come as any surprise for supermarket shoppers, but it’s likely that the global supply shortfall for food and livestock feed will worsen as farm economics are wholly unfavourable due to a concurrent surge in the price of nitrate fertilisers and other necessities. Prices began to crank up in the final quarter of 2021, as the price of gas required to produce ammonium nitrate began to rise steeply.