Ukraine conflict fuels uncertainty for agriculture

 The Russian invasion brought devastation to Ukraine, but uncertainty and volatility fueled by this conflict are rippling through U.S. and Texas agriculture markets.  

Texas A&M AgriLife Extension Service economists said both Russia and Ukraine do not represent major destinations for U.S. commodities, ranking 56th and 80th, respectively. However, the conflict’s impact on global trade, trade alliances and infrastructure could ripple throughout U.S. sectors in the near- and long-term future.

Russia imported between $1.2 billion and $1.6 billion of U.S. agricultural products annually until imports fell to around $200 million to $300 million over the last five years, following its invasion of Crimea.

David Anderson, AgriLife Extension economist, Bryan-College Station, said this type of conflict creates a “factor of chaos.” The invasion may not directly impact U.S. supply chains, but it will likely disrupt specific sectors, commodities and products as well as create uncertainty, which typically leads to market volatility...MORE