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Drought and uncertainty surrounding Ukrainian wheat worry US farmers

2023-09-17 20:08:11, Kosova & Bota CNA

The aftermath of the war in Ukraine and drought conditions in the country are fueling uncertainty in the US agricultural sector. VOA correspondent Kane Farabough visited a farmer who faces changing weather, rising costs and fluctuating commodity prices.

June was one of the driest months on record for the state of Illinois... a tough time for Gridley Township farmer David Meiss.

"We're at the end of June, and I see how all the investment and most of the work is being destroyed," says farmer David Meis.

June's drought occurred at a time when costs for seeds and fertilizers were higher than ever.

"Practically, we had no money for fuel," says Mr. Meiss.

But later things changed in Illinois. The situation in the town of Gridley went from almost complete drought to 18 inches of rain in just three weeks.

"It has never rained so much," says Mr. Meiss.

As he inspects the cornfields in July, he worries that the damage may already be done.

"We know that we have had yield losses and some plants have not developed as we expected. In a year like this, we need more income than we normally get", explains farmer Meiss further.

As he faces changeable weather this summer, events in the rest of the world could give his earnings an unexpected boost.

The war in Ukraine continues, while Russia announced it has scrapped a UN-brokered deal to safely transport Ukrainian grain across the Black Sea, reigniting fears of food shortages.

Joe Camp is director of programs at CommStock Investments, an agricultural risk management firm.

"Russia and Ukraine together account for about 20 percent of world wheat and corn exports. If this amount is missing from the world market, there will be a change in the balance of demand in the market", says Mr. Camp.

He says this situation could bring more buyers into the market for US wheat.

"Ukraine is a big supplier to our main customers like China. This will have an impact on the new situation that is being created in terms of US trade demand", says Mr. Camp further.

"I've heard people say that this will be a good thing for us in the long run because our commodity will be worth more," says farmer David Meiss.

While he will learn the full impact of the drought during the harvest in September, Mr. Meiss is aware that if demand and prices rise...his profit means losses inflicted on others.

"It's alarming to take such a large amount off the market and frankly, it's very sad. "I would probably give up the increased price of my commodity if I knew people weren't starving," says Mr. Meiss.

Wheat prices are down about 50% after hitting all-time highs during the first month of Russia's attack on Ukraine in 2022. Corn prices are also lower this year after hitting a 10-year high years last April. But prices for both crops are rising as Russia steps up attacks on Ukrainian ports on the Black Sea, a key route for Ukrainian grain to reach international markets./ VOA