Fertilizer Shortage 2022: What Do Spiking Prices Mean for Investors, Consumers and Farmers

A fertilizer shortage for 2022 is likely going to affect just about everyone as investors, consumers, and farmers deal with rising prices.

A tractor spreading fertilizer over a farm field representing Fertilizer Shortage 2022.

Source: Fotokostic / Shutterstock.com

So why is a fertilizer shortage set to take place in 2022? It all comes down to the war between Russia and Ukraine. With sanctions being placed on Russia, imports and exports to the country are currently blocked.

What does that mean for fertilizer companies? First off, there’s been some bearish sentiment surrounding fertilizer stocks lately that you can read about here. But it’s going to affect more than just them.

Let’s dive into what the fertilizer shortage of 2022 means for just about everyone.

What Does the Fertilizer Shortage of 2022 Mean for Investors

Like I already said, the bears have been hitting fertilizer stocks lately due to the war overseas. While that has some stocks, such as ICL Group (NYSE:ICL) and Yara International (OTCMKTS:YARIY) slipping, others, including CF Industries (NYSE:CF) and Nutrien (NYSE:NTR), are on the rise. Basically, investors are looking for good dips to pick up shares of fertilizer stocks ahead of increasing demand.

What Does the Fertilizer Shortage of 2022 Mean for Consumers

Moving on to consumers, it’s possible a price increase is on the way for various foods. That would be likely if farmers end up having to pay more for fertilizer to ensure good crops. While this may not be as strongly seen in large grocery chains, small stores and farmer’s markets could be hit worst.

What Does the Fertilizer Shortage of 2022 Mean for Farmers

There are two ways this fertilizer shortage could go for farmers in 2022. If issues between Russia and Ukraine continue, high fertilizer prices could hurt their business. However, if sanctions fall off, there could be an overabundance of fertilizer that nobody needs. That could also affect consumers and investors differently too.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/fertilizer-shortage-2022-what-do-spiking-prices-mean-for-investors-consumers-and-farmers/.

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