On one hand, farmers can look at the grain markets and see prices that are still pretty good after years of barely making it through. On the other hand, that has been rapidly offset by the increase in input costs and energy supplies in the past year. Any enjoyment of getting higher profit margins in farming is being all but erased.
The latest data from the USDA shows that we can expect fuel, lubricants, and energy costs to be up roughly 34% in 2022 vs 2021. American Farm Bureau Federation Economist Shelby Meyers says that is eating into the bottom line of many farms.
Traditionally, we would be seeing a decrease in fuel costs this time of year. That is usually coupled with increases in demand. But this has not been a normal year, economically.
Meyers says that farmers should already have plans in place to weather the storm should prices be exacerbated even more.
