July 10, 2025 | 18:22 GMT +7

  • Click to copy
Thursday- 14:27, 15/09/2022

Food prices could surge higher as extreme weather hurts farmers

(VAN) Grocery prices rose 13.5% in August on an annual basis, the highest since 1979.
In an aerial view, a worker with Fowler Brothers Farming uses a wheel loader to move a pile of almond trees during an orchard removal project May 27, 2021, in Snelling, Calif.  Photo: Justin Sullivan/Getty Images / Getty Images

In an aerial view, a worker with Fowler Brothers Farming uses a wheel loader to move a pile of almond trees during an orchard removal project May 27, 2021, in Snelling, Calif.  Photo: Justin Sullivan/Getty Images / Getty Images

Extreme weather, which poses a significant risk to the agriculture sector, could push already elevated food prices even higher, according to a Wells Fargo economist.

Farmers and ranchers have experienced extraordinary cost pressures in recent years due to extreme weather conditions.

However, that pressure is now being exacerbated by Russia's war in Ukraine as well as coronavirus-related supply chain disruptions, Wells Fargo economist Charlie Dougherty told FOX Business.

For one, severe drought in the West and Midwest has reduced agriculture production and already led to higher prices for consumers, Dougherty said.

Food prices have repeatedly outpaced the overall consumer price index except for June and March. The elevated prices are straining most consumers, especially lower-income families who are being forced to rely on food banks.

Food prices in August increased 11.4% compared with a year ago, according to data from the Labor Department and compared to a rise of 8.3% for all items.

Grocery prices have continued to rise rapidly, soaring 13.5%, which marked the biggest annual increase since 1979.

A bale of hay in a field during a heat wave outside Elgin, Texas, July 20, 2022. Photo: Sergio Flores/Bloomberg via Getty Images / Getty Images

A bale of hay in a field during a heat wave outside Elgin, Texas, July 20, 2022. Photo: Sergio Flores/Bloomberg via Getty Images / Getty Images

Chicken prices, in particular, have skyrocketed, jumping nearly 17% in the past year, according to unadjusted government data. Meanwhile, meat prices have risen 6.7% from a year ago.

Unfortunately, many factors are out of farmers' control. For instance, prolonged heat, less precipitation and unseasonably cold temperatures have not only reduced crop yields, but also lowered pasture quality, Dougherty said. On top of that, fire risks have increased as water resources have become strained.

Dougherty couldn't predict how long these extreme weather conditions could impact food prices but noted that extreme weather "could lead to downstream food prices being persistently higher in the future."

Meanwhile, the conflict between Russia and Ukraine drove sharp increases in fertilizer and diesel fuel costs.

Russia and Belarus fertilizer shipments account for more than 20% of global fertilizer exports, according to Wells Fargo's "The State of Agriculture" report last month.

The region is also a significant global source of wheat and soybeans. The conflict reduced both of these supplies, which "sent prices higher earlier this year, although prices have come back down in recent months," Dougherty said.

Farm equipment has been hard to find due to the fact that manufacturers are battling "shortages of key material inputs, while food processors have been hit hard by labor shortages," according to Dougherty.

Tr.D

(Fox Business)

Illegal loggers profit from Brazil’s carbon credit projects

Illegal loggers profit from Brazil’s carbon credit projects

(VAN) How a system designed to protect the world’s biggest rainforest is funding businesses with a track record of illegal deforestation.

Cage-free countdown: UK retailers face 2025 deadline

Cage-free countdown: UK retailers face 2025 deadline

(VAN) Pressure is growing on companies to adopt the cage-free commitment for their egg supplies. Many food companies said their eggs would be from cage-free systems by the end of this year (2025).

Droughts worldwide pushing tens of millions towards starvation

Droughts worldwide pushing tens of millions towards starvation

(VAN) Water shortages hitting crops, energy and health as crisis gathers pace amid climate breakdown.

Green Climate Fund approves a record $300 million for FAO-designed projects in Papua New Guinea, Saint Lucia and the Sahel

Green Climate Fund approves a record $300 million for FAO-designed projects in Papua New Guinea, Saint Lucia and the Sahel

(VAN) The initiatives focus on forestry management, fisheries transformation and land restoration.

FAO urges collective action for food security, climate and development challenges in Africa.

FAO urges collective action for food security, climate and development challenges in Africa.

(VAN) Director-General QU Dongyu addresses the 6th AU-EU Agriculture Ministerial Conference.

Science meets soil: High-tech solutions elevate China's agricultural development

Science meets soil: High-tech solutions elevate China's agricultural development

(VAN) In the suburbs of Beijing, there is an agricultural center spanning over 150 hectares dedicated to research, demonstration, and application of high-tech and precision agriculture.

Plant-derived fertilizer additive boosts yields and cuts emissions

Plant-derived fertilizer additive boosts yields and cuts emissions

(VAN) Researchers from the Institute of Applied Ecology of the Chinese Academy of Sciences have developed a new environmentally friendly fertilizer additive that significantly enhances crop yields while reducing emissions of harmful gases.

Read more