The White House seeks to increase agricultural production in the United States

The Associated Press reported IRNA on Wednesday; Citizens of the United States are feeling some of the pressure of this difficult situation, with food prices rising 8.8 percent year-on-year, the highest level since May 1981.

Biden is scheduled to visit a farm in Illinois with his administration’s Agriculture Minister Tom Wilsack to emphasize the role of US agricultural exports in easing financial pressures around the world, as well as a virtual meeting with G7 leaders to reaffirm solidarity with Ukraine. .

The Food and Agriculture Organization of the United Nations (WHO) says its food price index rose sharply by nearly 30 percent in April from a year earlier. The Ukraine war, which began on February 24, has pushed up crude oil, natural gas and fertilizer costs in addition to disrupting the country’s wheat supply to markets.

This month’s (May) analysis by the Center-Right American Think Tank suggests that the Middle East (South Asia) and North Africa are more likely to suffer from rising grain prices due to shortages. .

The Associated Press adds that the United States has limited capabilities to increase wheat production and make up for shortages. According to the US Department of Agriculture’s March estimate, wheat cultivation this year (2022) has increased by only one percent compared to last year, the fifth lowest area under wheat cultivation since 1919.

Biden’s visit to Illinois coincides with the release of the Consumer Price Index in May, which economists forecast slightly lower inflation for the first time since August, and an opportunity to emphasize the different US role in helping alleviate the challenges posed by the Ukraine war. Is.

White House spokesman Jen Saki told the meeting on Tuesday that Biden intended to talk about the need for us to continue to support farmers to help keep growing agricultural products such as wheat and other foodstuffs in the United States.

Speaking about inflation in the United States, Biden said the country and its allies are working to help transport and export 20 million tons of wheat and corn from Ukrainian warehouses to improve supply.

Several Democrats in the House of Representatives, including Nancy Pelosi, the head of the House of Representatives, warned after a visit to Ukraine that food shortages following the Ukraine war would spread beyond the country and cast a shadow over some of the world’s poorest countries.

Republican Rep. Jim McGovern following the White House meeting; He said that this situation will cause a world hunger crisis, which will be much more difficult and worse than any prediction.

Reuters cited the Corona virus epidemic, the Ukraine war and climate change as reasons for rising food prices around the world, and warned of a food crisis in developing countries. World food prices have been rising since mid-2020, when businesses were shut down due to the corona outbreak and the supply chain was disrupted.

Concerns about food security increased during the Corona outbreak, forcing some countries to stockpile their products to address future shortages and not offer them to the global market, disrupting the supply chain. Russia’s special operations against Ukraine in February have severely worsened the outlook for food prices, with the Food and Drug Administration saying prices fell to record lows in February and March.

Russia and Ukraine together produce about a third of the world’s wheat and barley, and two-thirds of their exports of sunflower oil for frying. Ukraine is also the world’s fourth largest exporter of corn. The war has damaged Ukraine’s ports and agricultural infrastructure and is likely to reduce its agricultural production in the coming years. Meanwhile, some buyers are refusing to buy Russian-made cereals because of Western sanctions.

Indonesia, the world’s largest supplier of edible oil, has banned palm exports since late April to ensure domestic demand for frying oil, which supplies edible oil for all foods from cakes to margarine, Reuters reported. Troubled in the world.

Estimating when the global food crisis will end is not easy because it depends on unpredictable issues such as the weather.

The World Bank predicts that wheat prices may rise by more than 40 percent by 2022. According to the bank, the price of agricultural products is expected to decrease in 2023 compared to 2022. Of course, this depends on the improvement of the supply chain by Argentina, Brazil and the United States, and there is no guarantee for its realization.

The sharp rise in world fertilizer prices due to sanctions by Russia and Belarus, the main producers, may cause farmers to use less fertilizer on their farms, resulting in lower production and a longer crisis.

High food prices will affect people in developing countries the most, because in these countries, a higher percentage of people’s income is spent on food.

The Global War Against Food Crisis, a coalition of the United Nations and its partner organizations, said in its annual report that the Ukraine war posed new threats to world food security, especially in crisis-hit countries such as Afghanistan and Ethiopia. Leaves Haiti, Somalia, South Sudan, Syria and Yemen.