input costs

Strong agricultural prices continue to support the farm economy, but the rapid rise in production expenses could pressure profit margins.  That’s pushing the demand for farm financing higher.  Larger-sized operating loans are continuing to boost farm lending activity.  The Kansas City Fed sai...

Leadership of the Senate Agriculture Committee recently urged the Department of Agriculture to expand margin protection tools under the Federal Crop Insurance Corporation.  Citing record high input costs and extreme volatility in commodity prices, Senators Debbie Stabenow and John Boozman said the expansion would “allow producers the opportunity to familiarize themselves with these tools and bette

The Purdue University/CME Group Ag Economy Barometer’s farmer sentiment index dropped five points to 112 in September.  The drop in farmer sentiment was primarily the result of producers’ weakened perception of current conditions.  The Current Conditi...

Much like it has been all year, input costs remain one of, if not the top concern for cattle producers across Idaho.  Cameron Mulrony, Executive Vice President of Idaho Cattle, said feed costs are high, fuel prices have returned to some of the highest levels we’ve seen this year, and it’s all dragging the bottom-line of ranchers.     He added i...

In early September, the USDA released its 2022 Farm Sector Income Forecast, which showed a mixed bag for the farm economy.  ERS predicts producer cash receipts will increase 21% to more than $525 billion nationally.  Crop values are expected to increase 9% year-over-year, while cash receipts from animal production will be up 28% from 2021 numbers.   Despite el...

Staggering farm input costs are driving Ag profits into the ground.  South Dakota Senator John Thune said it’s a tale of two economies: one, the economy of scale, and two, the cost of farming.   “This year will be the record year in terms of gross farm receipts.  In other words, top-line...

Farmer sentiment improved in August as the Purdue-CME Group Ag Economy Barometer rose 14 points above its July reading to 117.  Both the Index of Current Conditions and the Index of Future Expectations increased last month, meaning producers were less worried about their farm’s financial situation than in July, although they remain concerned about a possible cost-price squeeze.     When... Read Mo

U.S. beef producers face higher input costs this year, predicted up 7% when compared to 2021.  ERS reported earlier this week the farmer’s share of the retail value of beef also increased year over year, but rising input costs, especially for cattle feed, may limit farmers’ ability to benefit from higher cattle prices.   Feed ex...

According to the USDA, farm production expenses hit $392.9 billion in 2021, a 7.3% year-over-year increase ($3.66.2 billion in 2020).  The four biggest expenditures totaled $189.4 billion, just over 48% of all expenses last year.  Those four are feed at 16%, farm services at 11%, livestock, poultry, and related expenses at 10%, with labor accounting for 9.4%. The total fu...

Just ask Andrew Eddie, and he’ll tell you that 2022 is a challenging year for hay growers across Washington.  But, he noted it’s not challenging for the typical variables, such as weather and market prices, but rather for input costs.  The Vice Presi...