Input Costs & Producer Inflation
The Farm Bureau urges trade enforcement, biofuel growth, fair input pricing, and pro-farmer policy reforms to restore long-term certainty.
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.”
“We find lots of public support when there is a natural disaster, but maybe a little bit less when people think prices are too low.”
