Input Costs Becoming A Bigger Concern For Farmers

"Total production expenses are forecast to increase 29.8 billion, or about 8.3%," USDA Chief Economist Seth Meyer said in 2021, farmers this year will end up paying more for almost every major farm input compared to 2020.

"32% on fuel and oil, 15% on those, kinda, livestock inputs, or the purchases of livestock...fertilizer, 12.5%..."

And while many farmers say they are paying way more than 12.5%, some saying they are closer to 60% more than this time last year. But Meyer says that 12% covers all the costs of this year, including the months before input prices really began to climb.

"We might look to expenses rising into 2022, and currently an expectation of commodity prices is kinda moderating."

Which, he noted, could put a squeeze on producer margins next year.

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