Input Costs & Producer Inflation
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
Farmers should anticipate continued upward pressure on farm labor costs and monitor policy changes that may further impact hiring decisions.
U.S. produce growers face a structural disadvantage—cheaper imports driving down prices while rising labor costs squeeze margins. Without new policies or technology, profitability remains uncertain.
Higher tariffs may shield some U.S. crops but risk retaliation, lost markets, and higher costs for growers. The WTO disputes highlight the fragile balance between trade policy, farm exports, and input supply chains.
American Farm Bureau Federation (AFBF) economist Danny Munch explains how the Emergency Livestock Relief Program application process differs from other USDA aid programs.
The modest cut should slightly reduce borrowing costs on operating loans, land notes, and equipment financing for agriculture, giving some relief to producers under heavy debt loads.
The Fertilizer Research Act, reintroduced by Sens. Grassley, Ernst, and Baldwin, would direct the USDA to study and publish public reports on competition and pricing trends in the fertilizer market.
Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s Market Day Report for a further look at the drop in replacement heifers and the trend’s longterm impact on dairy producers and cattle prices.
Farmers are struggling with low commodity prices and skyrocketing input costs, resulting in debt that is outpacing income across the sector, according to the USDA’s new farm income forecast.
Demand for farm loans surged in the first quarter of the year, topping the previous record set in 2016.
Following an on-target CPI, the combination could suggest that inflation is cooling.
“It really hamstrings our availability of financing to get loans when everything is costing 30-60% more.”
“Producers want those options for identification and traceability purposes that they were promised back in 2013, and that’s what made it controversial.”
