Monday, September 15, 2025

Latest

Are we Sleepwalking into a Food Crisis? Fertilizer Supply Shock Threatens to Shrink US Harvests

When it rains, it pours. Food shortages and subsequent inflation are about to get a whole lot worse, because it looks like an imminent fertilizer supply shock will only slash yield and push crop prices even higher.

CF Industries Holdings, one of the world’s biggest fertilizer companies, last week warned rail shipments of crop fertilizers will be significantly cut back, after the Union Pacific railway unexpectedly demanded a reduction in the number of private railcars on its railways. Under the new mandate, shipments of urea and urea ammonium nitrate will be prioritized to America’s main agricultural states, marking a 20% reduction in CF Industries’ overall crop nutrient shipments.

“The timing of this action by Union Pacific could not come at a worse time for farmers,” said CF Industries CEO Tony Will. “Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers,” he warned.

Union Pacific’s move is especially detrimental for America’s midwest, which is responsible for producing about 80% and 90% of the country’s soybean and corn crop, respectively. CF Industries warned that if farmers are unable to secure adequate amounts of nitrogen fertilizer for the current planting season, yields will be substantially lower. “This will likely extend the timeline to replenish global grains stocks. Low global grains stocks continue to support high front month and forward prices for nitrogen-consuming crops, which has contributed to higher food prices,” read a company statement.

In response to tighter fertilizer supplies, some agricultural producers are switching their fields from corn to soybeans, given that the latter requires significantly less fertilizer. However, the move is a double-edged sword, because a reduction in corn crops will have a detrimental impact on the livestock industry since its a main energy ingredient in feed, not to mention the cascading shortage effect for food and industrial production.

Are we sleepwalking into a food crisis?


Information for this briefing was found via Bloomberg and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Consumer Inflation Slowed in January, But Grocery Prices Continue to Skyrocket

As widely expected, Canadian consumer prices continued their decline in January— albeit thanks to the...

Tuesday, February 21, 2023, 08:45:46 AM

Metro: Inflation Is So Bad We Increased Our Dividend 10%

As food inflation soars for the average consumer, Metro Inc (TSX: MRU) revealed this morning...

Tuesday, January 24, 2023, 09:13:50 AM

US Consumer Prices Ease as Expected, But Food, Shelter Inflation Continues to Soar

After rising 6.4% year-over-year in January, US consumer prices continued their descent last month, increasing...

Tuesday, March 14, 2023, 08:44:33 AM

Canadian Inflation Falls to 6.9% But Food Costs Continue to Skyrocket

Despite a rapid tightening of policy with more to come from the Bank of Canada,...

Wednesday, October 19, 2022, 09:09:28 AM

European Corn Crops Expected to Fall Sharply Amid Summer Heatwave, Drought

Europeans’ wallets are slated for a tough year ahead. Not only is inflation soaring due...

Saturday, August 27, 2022, 03:17:00 PM