ROSEVILLE, Illinois — It might not be long before Americans see the effects of high energy prices beyond the gas station.
Illinois hemp and crop farmer Andy Huston said the increase in energy prices and the decrease in Ukraine's corn exports pair together to create the perfect storm for U.S. farmers.
According to the U.S. Department of Agriculture's February feed outlook report, Ukraine has climbed in the last decade to become one of the world's four major exporters of corn. The USDA Foreign Agricultural Service estimated the country's corn production to reach a record-breaking 42 million metric tons for the 2021-2022 marketing year.
The loss of crop production in Ukraine as a result of the Russian invasion will leave behind a demand that other countries will have to step up to fill. U.S. Secretary of Agriculture Tom Vilsack told the Associated Press that American farmers would help provide supply chain relief if Russia depleted Ukraine's exports.
Now, farmers are faced with rising input costs in addition to the task of fulfilling agricultural demand abroad.
President Joe Biden announced Tuesday, March 8 that the U.S. will ban Russian oil imports and, in turn, cause higher gasoline and other energy prices in the U.S. and worldwide.
The energy cost increase will reach much further than just the gas pump.
"It's gonna affect everything," Huston said. "Anything that is transported … Anything that has to do with energy is going up."
When the cost of producing and transporting corn goes up, the cost of the product also has to go up if farmers don't want to take a loss. Eventually, that cost will trickle down to customers.
"Three out of every four products in a grocery store contain some sort of corn product or byproduct," Huston said. "(It's) the foundation for our food chain."