Sanctions Imposed on Russia Adversely Impacting U.S. Farmers and Consumers, Explained by Wells Fargo

Rhea-AI Summary

Wells Fargo (NYSE:WFC) highlights in its recent press release the rising wheat and fertilizer prices due to the Ukraine-Russia conflict. Dr. Michael Swanson, Wells Fargo's Chief Agricultural Economist, indicates that these price increases are significantly impacting U.S. consumers and farmers, with wheat production from the two nations accounting for 14% of global supply and Russia supplying 45% of essential fertilizer nutrients. Farmers are facing pressures from soaring fertilizer costs, which can exceed their land rental fees.

Positive

• Expert commentary from Wells Fargo's Chief Agricultural Economist indicates active engagement in agricultural market analysis.
• Increased visibility of the impact of geopolitical events on the agribusiness sector.

Negative

• Rising wheat prices may lead to higher grocery costs for consumers and reduced profit margins for farmers.
• Fertilizer price hikes can significantly increase operational costs for U.S. farmers.

Wells Fargo & Company (NYSE:WFC):

Wells Fargo's Chief Agricultural Economist Dr. Michael Swanson (left) and Agricultural Consultant Lon Swanson (right) (Photo: Wells Fargo)

What:	Broadcast-ready video commentary on the impact of rising wheat and fertilizer prices stemming from the Ukraine/Russia conflict, featuring Wells Fargo Chief Agricultural Economist Dr. Michael Swanson and Lon Swanson, Wells Fargo Food & Agribusiness Industry Advisors Sector Leader.
Why:	Higher prices nationwide are being felt by consumers and farmers. With Russia and Ukraine together growing 14% of the world's wheat1, and Russia accounting for up to 45% of the key nutrients used for fertilizer in the world2, consumers are feeling the pinch at the grocery store, including higher-priced breads, meat and milk. U.S farmers are also experiencing the pain of continued pressure on fertilizer prices, often costing more than the rent for the land on which they farm3.
Where:	Video news clips on Wells Fargo Newsroom
Time codes for video clips:	0:19 – 0:44 What do rising wheat prices mean for our grocery bills? 0:49 – 1:06 How does the conflict in the Ukraine affect our wheat prices? 1:11 – 1:25 How does that affect us at the grocery store? 1:35 – 2:04 How is the conflict affecting fertilizer prices? 2:10 – 2:49 How does this affect the U.S. consumer and farmer? 2:51 – 3:21 Where will the average American consumer see these price increases? 3:33 – 3:50 Do prices go up immediately or at harvest?

¹ Food Agricultural Organization of the United Nations 2020 production year
² Green Markets Fertilizer Price Index
³ University of Minnesota Center for Farm Financial Management

View source version on businesswire.com: https://www.businesswire.com/news/home/20220311005221/en/

Sarah Hatch, 618-407-0953

sarah.hatch@wellsfargo.com

@SarahHatchABQ

Source: Wells Fargo & Company

FAQ

What is the impact of the Ukraine-Russia conflict on wheat prices for Wells Fargo (WFC)?

The conflict has led to rising wheat prices, which could affect grocery costs for consumers.

How are fertilizer prices influencing U.S. farmers according to Wells Fargo (WFC)?

Fertilizer prices are soaring, often exceeding land rental costs, impacting farmers' profitability.

What percentage of global wheat production do Ukraine and Russia account for as per Wells Fargo (WFC)?

Ukraine and Russia account for 14% of the world's wheat production.

Who provided the insights on rising agricultural prices in Wells Fargo's (WFC) press release?

Dr. Michael Swanson, Chief Agricultural Economist at Wells Fargo, provided insights.