The cost of everything is skyrocketing right now. That means farm commodities are bringing in higher prices, but farmers also had to pay more just to plant them.
The general inflation rate is 8.6 percent. Experts say farmers are seeing at least twice that on seed and fertilizer with rates from 13 to 40 percent higher.
Dr. Joe Outlaw, with the Department of Ag Economics of Texas A&M, explains what farm income will look like this year.
“While some producers were able to benefit by locking in input prices early in 2021 for this year’s crop, most have indicated a very little ability to do so.”
Net income for farmers is expected to fall 4.5 percent, but most will still turn a profit. It will just be less than last year when several government payments supplemented income.
Related:
Strong commodity prices leading to very strong net farm income levels, according to one economist
Biofuel Boost: Study shows biofuels has significantly increased farm income
USDA: increase in net cash farm income is not keeping up with inflation
