5th of Finnish farmers plan to cut crops amid rising fuel prices: Survey

Two-thirds of farmers plan to reduce their use of fertilizers, while nearly one in five of them are planning to cut down on their crops over rising energy costs, according to a media report on Tuesday, citing a survey.

Many farmers in Finland are concerned about rising fuel prices as the oil transport chokehold in the Strait of Hormuz continues to disrupt the energy market, public broadcaster Yle reported, citing a recent survey conducted by two agricultural groups, SLC and MTK.

The poll found that two-thirds of farms plan to reduce their use of fertilizers, while nearly a fifth said they are planning to cut down on their crops.

SLC Chair Mats Nylund said the ongoing energy crisis will cost the domestic agriculture sector at least an estimated $236 million in lost income.

"It's worrying that there are large farms that are also planning to reduce production due to lack of profitability," Nylund was quoted by Yle as saying.

Nylund said he expects the government to take measures to help farmers as soon as next week, when it begins budgetary negotiations.

"It's scary to think about when you need to buy fuel oil for drying in the autumn and fertilizer for next year. What will the price be?" said Niklas Juslin, a grain farmer in Porvoo, a city on Finland's south coast.

The war involving Iran, the US, and Israel has driven global oil prices sharply higher, as the Strait of Hormuz, through which 20% of the world’s oil passes, remains under Iran’s control. As negotiations faltered, President Donald Trump vowed to blockade the strait to force Iran back to the negotiating table.