Even with the increase in crop prices, rising fuel prices over the past year have affected farmers’ results.
“We’ve seen a probably 30% increase in gasoline – diesel fuel, probably closer to 40% in a year,” said Tim Gach, president of the Buchanan County Farm Bureau. “And that has a huge effect on the bottom line of every farmer.”
Gach said most farmers use diesel tractors to do most of their work.
“And if you’re talking about a 40% increase in your fuel costs, why is that causing everyone to pull out their pencil sharpeners, sharpen their pencils and figure out how that result is going to work,” he said. declared.
In addition to fuel, the costs of other farming-related items are on the rise.
“I don’t know if there’s a farmer in the county who wouldn’t say, ‘Yeah, those are huge prices we’re seeing right now.’ Corn is over $7, beans are over $16 a bushel,” Gach said. “But if you start looking at all these production costs that go into that, all these input costs, things like that, now all of a sudden you look at it and you’re like, ‘Wow, am I really making money?'”
He said input costs are the main determinants of whether a farmer is in business the following year or not. Other factors affecting farmers include rising interest rates and the search for equipment.
“At the end of the day, it’s all downhill,” Gach said. “And eventually, as a consumer, you’ll see that in the store, as food prices go up, whether it’s beef, anything that uses corn or soy products, they’re going to all be higher because these prices are very high right now. There is a huge demand for all of this.
The war between Ukraine and Russia is also having an impact, he said, as those countries account for about 25% of the world’s corn.
Due to the war, countries will seek to import corn from other sources, including the United States.
“When you start cutting that supply, prices tend to go up, unfortunately,” Gach said.