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Watch: Biden debuts efforts to spice up U.S. crop manufacturing as Ukraine invasion fuels meals costs

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President Joe Biden on Wednesday is ready to stipulate White House plans to assist American farmers enhance crop manufacturing to counter diminished meals exports from Europe brought on by Russia’s invasion of Ukraine.

The president, set to talk from Kankakee, Illinois, will possible spotlight how Russian President Vladimir Putin’s assault has pushed up the worldwide costs of wheat, corn, barley, oilseeds and cooking oil. Russia and Ukraine mixed provide greater than 25% of the world’s wheat exports and about 20% of barley exports.

In an try to quell meals shortages, the Biden administration stated it plans to extend the variety of counties eligible for insurance coverage for “double cropping,” when farmers plant a second crop on the identical land in the identical yr.

The White House hopes these steps will assist U.S. farmers high a record-setting 2021 rising season, throughout which the worth of American agricultural exports hit $177 billion.

The newest initiatives come a month after the United Nations warned that as many as 1.7 billion persons are “highly exposed” to the domino impact of Russia’s conflict on world meals, vitality and finance programs. The world physique stated the invasion threatens to worsen starvation in nations which might be already malnourished.

Even in nations the place meals isn’t as scarce, costs are taking big chunks out of paychecks. In the U.S., the Labor Department stated Wednesday morning that the costs Americans pay for groceries rose 1% in April and are up 10.8% during the last 12 months.

U.S. Treasury Secretary Janet Yellen in April stated world meals costs are “skyrocketing.”

The White House stated it additionally plans to double its funding in home fertilizer manufacturing, to $500 million from $250 million, to decrease prices for growers.

The effort will try to ease one of many important culprits behind the spike in meals costs: A world scarcity of fertilizer.

Russia and Belarus, one in every of Moscow’s allies, present about 40% of the world’s exports of potash. Farmers depend on the potassium-rich salt and part within the globe’s fertilizer business to spice up annual harvests.

In current years, Russia additionally exported 11% of the world’s urea and 48% of the ammonium nitrate, two different key fertilizer parts, in response to estimates from Morgan Stanley.

“Fertilizer prices have more than doubled since last year, due in part to supply chain disruptions created and exacerbated by Russia’s invasion of Ukraine,” the White House stated in a truth sheet it printed Wednesday morning.

“These actions will help grow new markets for American-grown food, supporting jobs in rural communities across America,” the administration added.

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