Input Costs, Prices Weighing On The Minds Of Producers

This has been a challenging year for the farming community, at least on the national scene. Is that the same here in the Northwest?

Pat Hatzenbuehler, Ag economist at the University of Idaho says the latest Ag economy barometer shows farmers are pessimistic about the way things look now, and where the farm economy is headed into the future. And he said those feelings hold true for local producers.

“So, for much of 2024, high, high historically high input costs have been the biggest concern among U.S. producers, and they still are in the most recent Ag economy barometer," he noted. "But those low input prices have really become almost equal with regard to concern throughout the course of 2024. And so, they're basically of not a good combo when you have concerns that are almost equal for high input costs and also low, low crop prices.”

Hatzenbuehler said there are a variety of issues weighing on the minds of Idaho farmers. But he noted that what’s happening in the dairy sector will have his attention for the foreseeable future.

“So, keeping an eye on milk prices over the next year, and whether they are able to come up a bit, which I think is the forecast for now," Hatzenbuehler said. "That would be beneficial for not only the dairy producers themselves, but also their partners like feed sellers and other people that the dairy industry works with.”

Hatzenbuehler said he’s going to watch production Ag very closely in the coming year, specifically wheat. He noted countries like Russia, which has emerged as a very big exporter, Australia and others could make noise into the future.

Hatzenbuehler added he will watch basic economic issues, supply and demand, and see what kind of ripple that could have across the farming community.

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