Input Costs Cutting Into The Bottom-line Of Idaho Farmers

This year has turned out to be a disappointment for many in the farming community. Sean Ellis with the Idaho Farm Bureau Federation says producers were enjoying good prices as 2022 started, "But the rising costs of farm production and supplies, to produced those farm commodities, is slowing down that momentum somewhat.  Or actually, a lot I would say.  You know demand for a lot of farm products was up, prices were up and then you got the skyrocketing input costs is really dampening some of the momentum and the enthusiasm in farm country.”

According to IFBF, farm production costs are up roughly 30% year-over-year on average, with some growers reporting a bigger jump. Ellis said what makes this increase so challenging is the surge is everywhere.

“So, we’re talking everything.  You talk to farmers that remember the 2008 downturn when fertilizer was way up, and that was the big issue.  Now, its everything.  You know, its fertilizer, equipment, fuel, labor, other chemicals, it’s across the board increases in everything.”

Ellis added the war in Ukraine and the ongoing drought have both added a lot of uncertainty as well.

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