Biden Admin. to Double Funding for Domestic Fertilizer Production to $500Mln - White House
The Biden administration said on Wednesday it is doubling funding for fertilizer production inside the country in an effort to address rising costs brought on by sanctions against Russia, the world's largest fertilizer exporter
WASHINGTON (Pakistan Point News / Sputnik - 11th May, 2022) The Biden administration said on Wednesday it is doubling funding for fertilizer production inside the country in an effort to address rising costs brought on by sanctions against Russia, the world's largest fertilizer exporter.
"Today, President (Joe) Biden is announcing that he is doubling his initial $250 million investment in domestic fertilizer production to $500 million to lower costs and boost availability for farmers, so they can obtain the inputs they need at prices they can afford to maximize yields," the White House said in a statement.
Fertilizer prices have more than doubled since last year, due in part to supply chain issues, the Ukraine conflict and rising energy costs, it added.
The administration also plans to support efforts to increase cropping in the US.
"The Biden-Harris Administration is seeking to expand insurance for double cropping to as many as 681 additional counties," the statement noted.
The White House has blamed Russia for the current inflation, saying that the situation in Ukraine has cut off a critical source of wheat, corn, barley, oilseeds, and cooking oil, as well as disrupted global supply chains for fertilizer, which farmers depend on to maximize yields.
"These and other actions, combined with the ongoing pandemic-related disruptions to global supply chains, have put pressure on food prices, with global food prices increasing nearly 13 percent following Putin's invasion," the statement read.
According to the UN Food and Agriculture Organization, Russia and Ukraine were among the top global exporters of various types of staple foods, including wheat and corn in 2021. Russia is also a top fertilizer exporter. Ukraine's food production is now being threatened by factors such as disruption of logistics, loss of access to agricultural lands, labor shortages, damage to crops due to hostilities, and destruction of food system assets and infrastructure.