Ag News

Even with good prices the deck is stacked against farmers

IARN — We know prices have been good. The numbers don’t lie, and if you have a crop to sell, you are sitting pretty, right? Right?

We would like to think that, and for the most part, there is still money being made, but the profit margins aren’t as high as we would like them to be. Increased costs of fertilizer, fuels, seeds, chemicals, and everything else; coupled with a supply chain that has us by the throat, and you have a recipe for trouble. Also, if the markets come down, which eventually they must, that profit margin may be all but erased. Because the while the price of crops may be lower, the costs of inputs never go back down. If they do go lower, it is usually not by a bunch. Those prices are going to be here to stay.

The issues farmers face were brought up on Capitol Hill this week and concerns were raised from the USDA… to the Senate… to the White House. Voices were raised to support those who feed the country and feed the world.

United States Agriculture Secretary Tom Vilsack came to Capitol Hill earlier this week for a Senate hearing and he talked about the real problem that could face producers in 2023. The reason for the year gap is that many of 2022’s inputs were booked before price hikes chewed down profit margins. The real test will come in the next two years.

For more on this story, visit the Iowa Agribusiness Radio Network.

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