"Fertilizer prices have skyrocketed by up to 40%, compromising livelihoods and food security. This vulnerability is not accidental and it is not cheap either."
"Governments spend more than $700 billion a year subsidising agriculture, much of it bankrolling the very fertilizers and fossil fuel inputs that make farming so exposed to price shocks."
"The estimated $700 billion in annual agricultural subsidies also represents one of the largest untapped pools of patient capital for the agri-food transition."
"It is therefore time to reimagine how these billions in public support are used, repurposing them to reduce exposure to shocks in fuel and fertilizer markets."
In 2022, Russia's invasion of Ukraine caused fertilizer prices to surge, impacting farmers globally and raising fears of food shortages. Current conflicts in the Middle East are again driving up natural gas costs, further increasing fertilizer prices by up to 40%. Governments spend over $700 billion annually on agricultural subsidies, yet farmers receive only 35 cents of value per dollar spent. This funding could be redirected to enhance soil health and reduce vulnerability to market shocks, aligning public spending with climate goals and improving food security.
Read at Fortune
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