Inflation Worsens, Fears of Shortages Grow as Food Prices and Production Costs Rise

While high-priced groceries continue to roil consumers, rising food production costs are hampering farmers and stoking widespread uncertainty.

Global food prices hit a record high in February, rising 20.7% from a year before and over 40% from two years ago. Meanwhile, according to The Fertilizer Institute, common fertilizer prices rose from $200 per ton in July 2020 to over $600 per ton in February 2022. In addition to high prices, farmers have also been impacted by supply chain disruptions that continue to delay orders of key agricultural machinery. Russia's invasion of Ukraine spurred global wheat prices to hit record highs last week, driving more market instability and fears of shortages. Before the conflict began, Russia and Ukraine combined to produce roughly 26% of the world's wheat. The UN Food and Agriculture Organization warned last week of a potential food crisis amid the conflict and persistently high prices across the globe.

Many reports highlighted high food production costs and frustrated farmers alongside coverage of persistent inflation. Sources across the spectrum quoted farmers who said that despite high prices, they're struggling to sell products and may have to cut production. Left-rated sources were more likely to highlight concerns about food shortages and high prices in a global context. Some right-rated sources focused more on how Russia's invasion and high production costs are affecting U.S. farmers.