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Survey: farmers expect ag input prices to go up

Farmers remain concerned about rising ag input prices, according to the latest Ag Economy Barometer.  

Purdue University’s Jim Mintert says “people are concerned about farm input prices going up for things like seed, fertilizer, and fuel…if you think about it in the overall context, even though commodity prices particularly for corn and soybeans are still at elevated levels compared to history, people are worried about a margin squeeze taking place with these costs rising rapidly.”

Over the last decade, farm input prices have increased an average of 1.8 percent each year.

But, more than half of producers surveyed expect input prices to rise four percent or more over the next year; three out of 10 expect costs to rise at least 8 percent, and one out of five farmers expect input prices to rise by 12 percent or more.

The Purdue University/CME Group Ag Economy Barometer is a monthly national survey of 400 U.S. agricultural producers.

Audio: Jim Mintert