According to Bloomberg News, the farmers in the United States are likely to respond to the “price signals” and enhance their production to avoid any domestic shortfall of food that might arise due to the ongoing Ukrainian war, as per chief economist White House on Monday.
Cecilia Rouse, the chair of President Joe Biden’s Council of Economic Advisers, stated in a briefing that they do not expect a shortage there since they are net exporters. However, Cecilia said that they are aware that there are many areas across the globe that bank heavily on wheat exported from Russia and Ukraine, aside from a few other types of grains.
The increased production in the USA
She also forecasted that farmers in America would adjust and increase planting to derive benefit from the higher prices. She also stated that with the rising cost of food, the situation would be countered by making additional plantings and taking adequate measures to take advantage of raised price signals.
Bloomberg News reports that the Ukrainian war is not just causing disruptions in the agricultural field in one of the globe’s breadbasket but adversely impacting the international fertilizer market, where Russia is one of the topmost suppliers. The country constituted approximately one-fifth of the exports in the world last year.
The price for essential food items like cooking oils, meat, and bread has surged ever since the Russian invasion started last month, hampering the already disrupted supply chain hiccups caused by the pandemic.
