American farmers plan to significantly increase sunflower crops this year due to supply disruptions amid Russia’s military invasion of Ukraine, Bloomberg writes.
At the same time, a jump in agricultural prices to record levels for many years could increase motivation among farmers to plant more, said John Sandbakken, executive director of the National Sunflower Association. The USDA tentatively forecasts a 10% increase in sunflower acreage this year.
“I’m sure the increase will be more, almost 20%,” Sandbakken said in a telephone interview with Bloomberg.
Sunflower is used in a very wide range of products, from potato chips and sunflower oil for frying to bird food and shampoos. However, this year this commodity may be in short supply, as Ukrainian farmers are forced to reduce acreage and exports due to hostilities in the country. Ukraine is considered one of the world’s largest sunflower exporters.
Meanwhile, last year’s devastating drought in the northern Great Plains of the United States plays into the hands of American farmers this year, as it left excess nitrogen in the ground, which reduces fertilizer costs, Bloomberg notes.
The price of new crop sunflower in the US is about $34 per 100 pounds (about 45 kg), higher than the previous record price of $30.5 reached in 2008. Old crop sunflower prices are also nearing their highest since 2011, Sandbakken notes.
