12 Hrs
Source:
الاقتصادية
US farmers face insolvency amid diesel costs and trade disputes
The American agricultural sector is experiencing a severe downturn due to rising fuel and fertilizer prices caused by the Russian-Ukrainian war and regional conflicts. This has led to increased production costs and reduced farmers' profits. Diesel, used to operate equipment, has reached approximately $6.53 per gallon, among the highest levels, with disparities between states. Additionally, trade disputes and wars have disrupted access to vital markets, while fertilizer prices have surged by up to 50%, due to the halt of raw material exports caused by the conflict in the Middle East. Many farmers are turning to loans amid rising interest rates, which increases the risk of bankruptcy; the number of bankruptcy cases grew by 20% last year, with ongoing financial challenges expected to persist in the agricultural sector. Some entities are advocating for government measures to support farmers, but the suffering continues due to the broader global economic repercussions they face.
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