Russian Potato Crisis Adds to Putin's Inflation Headache
The price Russians pay for them has jumped to a record, climbing nearly 50% this year alone to mark the biggest increase of any tracked food, according to the Federal Statistics Service. That follows an almost doubling in prices in 2024 amid poor harvests.
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Agriculture Secretary Brooke Rollins announces new rural development investments at Iowa State Fair
U.S. Secretary of Agriculture Brooke Rollins presented the steer Snoop Dog at the Governor's Charity Steer Show during the Iowa State Fair Aug. 9, 2025. (Photo by Robin Opsahl/Iowa Capital Dispatch) U.S. Secretary of Agriculture Brooke Rollins came to the Iowa State Fair Saturday to compete in the Governor's Charity Steer Show — and to announce $152 million in U.S. Department of Agriculture investments for Iowa rural development projects. Before heading to the Livestock Pavillion to show the steer Snoop Dog, Rollins announced that 19 projects in Iowa would receive funding through USDA Rural Development grant and loan programs. The announcement was made at a news conference where she was joined by Iowa Gov. Kim Reynolds and state Secretary of Agriculture Mike Naig. Approved projects include a $37 million loan for the Guthrie County Hospital in Guthrie Center to expand and renovate its facility, a $5 million grant and $39 million loan for the City of Emmetsburg to replace its wastewater treatment facility, and a $27.7 million loan to the Southern Sioux County Rural Water System for the building of new wells, a treatment plant and transmission lines in Plymouth and Sioux Counties. 'This unprecedented, coordinated rural development project will help boost the rural economies, develop rural infrastructure and encourage private investments,' Rollins said. Reynolds celebrated the investment and thanked Rollins for working closely with Iowa, saying 'during this time of uncertainty in the ag economy, I'm so grateful to have a partner that we can rely on.' She said the new investments will make a difference in rural Iowa communities. Reynolds said when she visited the Guthrie County Hospital in May, where she signed a law aimed at expanding medical training opportunities and rural health care access, the hospital CEO had told her about how much of a difference the USDA funding would make in helping the facility continue to provide health care in their community. Rollins said the investment is part of a larger effort from President Donald Trump and Republicans in Congress aimed at 'putting farmers first again,' which she said is also being done through new international trade agreements, investments in farm safety net programs and agriculture components of the budget reconciliation bill passed. Though much of the focus on discussing the 'big, beautiful bill' has surrounded the cuts and changes to public assistance programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), Rollins said the bill 'protected two million family farms from the death tax,' increased reference prices and extended clean fuel production tax credits. 'Most of the mainstream media focused on, 'Oh, these horrible cuts that are going to cause death and destruction across the world' — which, of course, none of that was true,' Rollins said. 'In fact, we were investing more money, Congress was, into our agriculture sector and putting farmers first.' Some agriculture policy advocates have said the budget reconciliation bill, which cuts SNAP funding while increasing spending on farm subsidies, will further consolidate the agriculture industry and benefit wealthy farmers. It's the second event Reynolds and Rollins have held together this week. On Monday, the Iowa governor was in Washington, D.C. for a news conference where Rollins signed six waivers approving restrictions on purchases of certain food items through the SNAP. Rollins approved Iowa's waiver to limit unhealthy foods available to buy through SNAP in May. USDA also approved an Iowa waiver to implement an summer eating program for kids, called Healthy Kids Iowa, earlier in the year. The demonstration project, providing a box of food valued at $40 each month for families in need through 264 access points across the state, is an alternative to the SUN Bucks program, also known as Summer EBT, that provides $120 per child each month during the summer to eligible families that can be used at retailers accepting SNAP. Both of these efforts are aimed at reducing unhealthy eating habits, the governor said, though hunger advocates have argued these steps make it more difficult for Iowans to access food assistance. Rollins also spoke on her announcement in July for the USDA to restructure and consolidate parts of the agency, in part by relocating some of USDA workforce outside of Washington, D.C. to five regional hubs in North Carolina, Missouri, Indiana, Colorado and Utah. The list has 'no Iowa, but there are more announcements coming,' Rollins said. She said Iowa is well represented at the USDA, with many agency employees in the state and several Iowans in USDA leadership positions. 'The bottom line is moving the power out of Washington, returning the government to the people, and having people that are better able to serve our constituents, who are closer to them,' Rollins said. 'So that is the bigger (arch), but more news coming in the days to come.' Solve the daily Crossword
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Putin will meet Trump as a ‘fiscal crunch' is about to hit Russia's war machine
Russian President Vladimir Putin will meet U.S. President Donald Trump in Alaska on Aug. 15 to discuss ending Moscow's war on Ukraine. Meanwhile, Russia's economy continues to feel the strain of Western sanctions and high interest rates. The Kremlin also faces a 'fiscal crunch' that will hamper its war effort, an expert said. Russia's economy has been surprisingly resilient in the face of Western sanctions that were triggered by President Vladimir Putin's invasion of Ukraine in 2022. But as Putin gets set to meet President Donald Trump in Alaska on Friday to discuss ending the war, there are more signs of strain in the Russian economy and fiscal situation. In June, Economy Minister Maxim Reshetnikov warned that Russia was 'on the brink' of a recession. And last month, the central bank slashed interest rates by 200 basis points to revive stalling growth. Meanwhile, government finances have been under growing pressure too. The Kremlin's oil and gas revenue, which is its main source of funds, tumbled 27% in July from a year ago to 787.3 billion rubles, or about $9.8 billion. That's as crude oil prices have fallen, while Europe has continued to add sanctions on Moscow and crack down on the 'shadow fleet' of tankers delivering Russian crude supplies. Even as revenue weakens, spending keeps soaring amid Russia's relentless attacks on Ukraine. In addition to outlays for weapons, incentives to mobilize more volunteers for the army as well as compensation to families of dead soldiers remain sky high. The result has been widening deficits, with the gap for the first seven months of the year reaching $61.44 billion, or 2.2% of GDP, up from 1.7% during the first six months of the year. Spending from January to July shot up 20.8% compared to the same period a year ago, while revenue increased just 2.8% during that span. Economist and author Anders Åslund, who wrote Russia's Crony Capitalism: The Path From Market Economy to Kleptocracy, said the situation is dire enough that Russia may run out of financial reserves, forcing cuts to public expenditures. In a Project Syndicate op-ed on Thursday, he pointed out that Moscow has few sources of funding as sanctions have largely shut out Russia from the global financial system—and even banks from ally China are reluctant to lend money. So Russia has had to tap reserves in its National Wealth Fund, which has dwindled from $135 billion in January 2022 to just $35 billion this past May, according to Åslund, who predicted that the fund is set to run out in the second half of this year. 'Russia's economy is fast approaching a fiscal crunch that will encumber its war effort,' he added. 'Though that may not be enough to compel Putin to seek peace, it does suggest that the walls are closing in on him.' For now, Moscow has avoided steeper penalties from the U.S. as Trump backed off from this threat to impose secondary sanctions that would hit buyers of Russian oil, choosing instead to try reviving cease-fire talks in Alaska. An earlier round of negotiations in April to stop the fighting included a proposal from Trump's envoy to lift U.S. economic sanctions on Russia, require neutrality for Ukraine, and recognize territory Russia seized. Ukrainian and European officials rejected those terms, and talks failed to produce a deal. On Friday, Trump predicted some land would have to change hands to reach an agreement this time. 'You're looking at territory that's been fought over for 3½ years with—you know, a lot of Russians have died, a lot of Ukrainians have died,' he said. 'There'll be some swapping of territories to the betterment of both.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Iceland blames Rachel Reeves for price rises
Iceland has blamed Rachel Reeves for fuelling higher food prices, months after its Labour-backing chairman told businesses to stop complaining about the Budget. Bosses said the supermarket 'will inevitably have to pass [some cost increases] on to consumers' after food makers were struck by an increase in both employers' National Insurance contributions and the National Living Wage. Iceland said: 'We are doing our utmost to offset the growing input cost pressures caused by suppliers seeking to recover the increase in their own labour costs arising from last autumn's Budget, but will inevitably have to pass some of these on to consumers, where we can do so without weakening our own price position in the marketplace.' In accounts published this week and signed off in July, the company said it was now expecting UK food price inflation to peak at between 4pc and 5pc in the next six months. The comments follow warnings over the rising cost of the weekly shop, with the Bank of England this week saying it was expecting increases for the rest of the year. Officials said supermarket price rises had been fuelled by government policy, pointing to the increase in the minimum wage, the Chancellor's tax raid and a net zero packaging levy. Faster than expected increases in food prices are set to send the overall rate of inflation to a peak of 4pc in September. The higher prices at Iceland come after the supermarket's chairman Richard Walker previously urged rival grocery bosses to stop 'wallowing' and 'complaining' about Ms Reeves' tax raid. Mr Walker, a former Tory donor who changed allegiance in January 2024, said in December: 'This isn't a time for businesses to wallow… The Government isn't going to change its mind. It was a tough Budget, but we adapt.' Credit rating agency Fitch recently raised concerns over Iceland's profitability, suggesting the supermarket chain would have to invest in price cuts this year at a time when it is battling higher costs. It said the supermarket, which employs more than 30,000 people, would face 'momentary profit pressure'. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
