How Are Increasing Input Costs Impact Farmers?

For many growers, these are good times, with high commodity prices. Scott Gerlt, economist with the American Soybean Association, says fertilizer prices tend to move up when commodity prices go up; which is what the American farmer is seeing right now.

"For things like that, we're seeing about a doubling of the price from a year ago. And there's a few other issues going on. There's higher transportation costs, hurricane Ida has shut down some of the ports for bringing it in, as well as some of the fertilizer plants."

And trade issues such as import duties are limiting the amount of phosphates and other fertilizers coming in to country.

"But we're also hearing, from our producers, quite a bit of concern about things other than fertilizer as well; chemicals, seeds."

USDA's estimating production expenses this year will be 7% higher than 2020, and higher still in 2022 with major increases expected for the three F's: fertilizers, feed, and most of all fuel.