Nearly two years after COVID-19 became a global pandemic. the supply chain is still suffering from its effects.
Economists at the Federal Reserve Bank of New York reported in a March 3 Liberty Street Economics article that supply chain disruptions will continue to challenge the world economy. As per the Global Supply Chain Pressure Index, global supply chain pressure has slightly eased, yet logistical stress remains at historically high levels. Inflation also continues to challenge consumers, with the Bureau of Labor Statistic reporting the Consumer Price Index increased 7.9 percent in the last year. This is reportedly the largest 12-month increase in 40 years.
One group suffering from the supply chain pressure is farmers, according to the American Farm Bureau, an organization that dubs itself the unified voice of American agriculture.
Dr. Roger Cryan, the chief economist of the American Farm Bureau, reported the shift in demand clogged up ocean shipping in a March 8 conversation with American Farm Bureau.
"That's created problems at the ports: shortages of containers, our ag exporters have had a hard time moving product back across to Asia, our farmers and equipment manufacturers have had a hard time getting inputs and there are all kinds of things that are hard to get," Cryan said. "We've pumped up the economy and demand so much that it's going to take time for supply to catch up, and that's going to take time and investment. Congress passed an infrastructure bill that should help the U.S. check off a lot of those overdue projects that will help the economy grow."
U.S. farmers also reportedly find themselves in a pinch over increasing operational expenses. High natural gas prices are also a factor as natural gas is a key component to crop fertilizer and high prices are driving up the cost of fertilizer in some cases as much as 190 percent.
