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One relevant point, the most important input for corn at least is nitrogen and it can be and is often produced locally. I grew up on an Iowa farm and there was
by colechristensen 3y ago
One relevant point, the most important input for corn at least is nitrogen and it can be and is often produced locally. I grew up on an Iowa farm and there was an ammonia plant about 20 minutes away.
There were price and availability shocks because of the Ukraine war and price of natural gas. Ammonia fixation requires energy, atmospheric nitrogen, and hydrogen. The hydrogen is sourced from natural gas (methane), but could just as well be sourced from electrolyzed water at higher cost.
Other fertilizers from mineral sources were significantly globally supplied by Ukraine as well, which was more of a problem.
A tangent problem for farmers is input prices scaling with commodity prices. Seed genetics companies and fertilizers, etc. tend to raise in price to what the market will bear, not particularly to the marginal cost of the product forcing the farming margins to be thin… which puts constant pressure on all but the biggest farmers. Who then advocate for agricultural policy that leads to things only being profitable and possible on very large scales, in general.
Not many small farmers hang on like my family and it just might end with my father if I don’t take it up as a sort of hobby retirement… but that’s not really doing it for real anyway.