News
Inflationary pressures could cause multi-year volatility
An ag economist says inflationary pressures will likely impact all of the agriculture well into the future.
Tanner Ehmke with CoBank tells Brownfield for some grain farmers this season might be incredibly profitable, but it’s not likely to last.
“This year it may turn negative perhaps this fall or next year as costs continue to rise,” he shares.
Ehmke says increasing costs of labor, materials, fuel, fertilizer, and more quickly can erode margins, and for those facing drought conditions, “high grain prices don’t mean much if you don’t have anything to sell.”
Ehmke says the feed and forage budget for livestock producers could even be elevated for multiple years.
“Some are projecting because of this fertilizer shortage in parts of the world, that’s going to be impacting yields, and so now we’re looking at what could happen to grain and forage production going into 2023 and 2024,” he explains.
He recommends locking in as many costs as possible as early as possible to combat increasing inflation.
Tags: ag economy, CoBank, feed, feed costs, Forage, Grains/Oilseeds, hay and forages, inflation
Great comments and on the money!