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For a second year, the war in Ukraine is adding to worries for American farmers already pinched by higher interest rates. VOA's Kane Farabaugh speaks with farmers in the Midwest state of Illinois about the impact of world events as they launch another planting season amid cascading uncertainties.
Content TypePackage
LanguageEnglish
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((PLAYBOOK SLUG: U.S. Farmers Ukraine 2023
HEADLINE: US Farmers Buffeted by War in Ukraine, High Interest Rates
TEASER: At the start of the planting seasons, farmers face high interest rates and potential price volatility due to the war
PUBLISHED AT: May 27, 2023 at 1:35pm
BYLINE: Kane Farabaugh
CONTRIBUTOR:
DATELINE: Streator, Illinois
VIDEOGRAPHER: Kane Farabaugh
PRODUCER: Kane Farabaugh
SCRIPT EDITORS: Bowman, Reifenrath
VIDEO SOURCE (S): VOA
PLATFORMS (mark with X): WEB __ TV X RADIO __
TRT: 2:46
VID APPROVED BY: MAS
TYPE: TVPKG
EDITOR NOTES: ))
((INTRODUCTION))
[[For a second year, the war in Ukraine is adding to worries for American farmers already pinched by higher interest rates. VOA's Kane Farabaugh speaks with farmers in the Midwest state of Illinois about the impact of world events as they launch another planting season amid cascading uncertainties.]]
((NARRATOR))
Last year’s start of the war in Ukraine brought chaos for farmers like David Isermann.
((David Isermann, Illinois Farmer))
“It totally disrupted the whole system. Prices went up in anticipation.”
((NARRATOR))
The biggest price hikes were for a farmer’s “inputs” like fertilizer.
((David Isermann, Illinois Farmer))
“The problem is that Russia and their ally Belarus are major suppliers of the three things we use: nitrogen, phosphorus, and potassium. So that interrupted our supply line of that. When you take out two of the world’s major suppliers, it affects things.”
((NARRATOR))
As the war in Ukraine grinds on for second year, Isermann is planning for a new growing season. He is thankful that – for now – supply chain bottlenecks have eased.
((David Isermann, Illinois Farmer))
“Things have kind of worked themselves out a little bit. Prices are dropping. Grain prices are down, so people are not as aggressive on fertilizer purchases, so that kind of helps demand a little bit.”
((Joe Camp, CommStock Investments)
“Lately we’ve also seen prices sliding.”
((NARRATOR))
Joe Camp of CommStock Investments, an agriculture risk management firm, says the overall price for grains like corn, soybeans and wheat stabilized after Russia and Ukraine agreed to a grain-selling accord brokered by the United Nations and Turkey in 2022.
((Joe Camp, CommStock Investments))
“Since then, we’ve not seen a material increase in demand, but we know that that can change going forward.”
((NARRATOR))
Particularly if the grain deal, which was extended May 17 for two months, falls apart as the war rages on.
((Joe Camp, CommStock Investments))
“It’s been something that’s actually taken prices lower as we compete with cheap wheat, continue to do that, the same thing with corn. It keeps prices generally lower than they otherwise would be if we had that demand flowing back from Russia and Ukraine.”
((NARRATOR))
The Black Sea Grain Initiative also impacts a farmer’s input prices.
((Joe Camp, CommStock Investments))
“The grain export deal allows for Russia to keep sending out fertilizer, so relative to what we feared, we’re well stocked and benefitting from at least lower prices heading into the new season.”
((NARRATOR))
But while Isermann is shelling out less money to plant and grow crops, the cost of financing those purchases has risen due to soaring interest rates.
((David Isermann, Illinois Farmer))
“It affects everybody we touch.”
((NARRATOR))
A tight U.S. labor market has made it harder for Isermann to hire farmhands and other workers.
((David Isermann, Illinois Farmer))
“You try to find somebody to haul grain for you, if you don’t have your own truck, it’s very difficult. That problem is there. We just don’t have the people to drive the trucks anymore.”
((NARRATOR))
While Isermann is slowly incorporating automation into his farming operation, he has no choice but to depend on himself and his family to plant and harvest the crops he grows this year.
Kane Farabaugh, VOA News, Streator, Illinois.
NewsML Media TopicsArts, Culture, Entertainment and Media
NetworkVOA
Embargo DateMay 26, 2023 14:18 EDT
BylineKane Farabaugh
Brand / Language ServiceVoice of America - English
