IARN — Input costs are limiting the profits for farmers when you compare them against the higher grain prices we have been enjoying. When these prices were increasing a few years ago, farmers knew that the high-profit margins were going to be short-lived. Many farmers we spoke to said one of two things were going to happen: either prices were going to go down back to the levels we saw earlier, or prices of their inputs were going to rise. Either way, their profits wouldn’t remain at the higher rate they enjoyed. In fact, when we saw concerns about propane, fertilizer, and other supplies in the past few years, that the farmers were right and that something was going to cause their profit margins to be cut.
For more on this story, visit the Iowa Agribusiness Radio Network.
