Silicon Chip Shortage Leads To Potato Chip Shortage: Farmers Halt Equipment Shipments To Dealers


Readers have been briefed on the ongoing semiconductor shortage that may last a “couple of years.” The auto industry has grabbed the spotlight as the hardest-hit industry, with some of the world’s biggest manufacturers restricting production.

According to a new report, the worldwide chip shortage is impacting the agriculture industry that may last for a couple of years and has already impacted the price of potato chips.

Hoosier Ag Today reports, “The biggest factor impacting the ability of US farmers to produce the food we need has nothing to do with the weather, the markets, trade, regulations, or disease. The worldwide shortage of computer chips will impact all aspects of agriculture for the next two years and beyond… farm equipment manufacturers have halted shipments to dealers because they don’t have the chips to put in the equipment… not only have combine, planter, tillage, and tractor sales been impacted, but even ATV supplies are limited. Parts, even non-electric parts, are also in short supply because the manufacturers of those parts use the chips in the manufacturing process. As farmers integrate technology into all aspects of the farming process, these highly sophisticated semiconductors have become the backbone of almost every farming operation.”

Rabobank’s Global Economics & Markets desk commented on the Hoosier Ag Today report and cautioned on the “technological wonders of a global economy based on just-in-time supplies of a few key inputs from only a few locations; and then demand surged due a virus that ran rampant through said global economy; and supply chains got snarled for that, and other reasons; and now a lack of silicon chips even impacts on the price of potato chips (in the US) and chips (in the UK).” 

The shortage has caused Reynolds Farm Equipment, one of Indiana’s largest John Deere dealers, to inform customers that order times are unknown at the moment because production for specific equipment has been disrupted because of the lack of chips.- READ MORE

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