According to the American Chemistry Council, total US chemical exports are expected to rebound in 2021 but a full recovery to pre-pandemic levels is not expected before 2022. Agricultural chemical manufacturers are facing the same supply chain disruptions as other industries with the main issues being shipping container shortages and port congestion.
Some industry experts have speculated that this could lead to a shortage of key active ingredients for the 2022 growing season. This may result in higher prices which could present a challenge for farmers especially since farm income is expected to drop in 2022.
According to the Food & Agricultural Policy Research Institute, farm income is projected to decrease $23 billion in 2022 as a result of an expected decline in federal government payments combined with higher input costs. FAPRI estimates net farm income at $99.3 billion, a $23 billion drop from expected net farm income for 2021.
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