Farmers are bracing for a more expensive 2026 harvest and 2027 growing season.
American Farm Bureau Vice President of Public Policy and Economic Analysis John Newton says fuel and fertilizer costs are a major concern.
“Going into this fall when prices are still elevated, they’re above where they were before the Strait of Hormuz closure. And then diesel prices, they spiked and hit a record $5.41 a gallon in Illinois in early May. They cooled off a little bit in July, but they’ve started to move back higher again.”
He suggests that despite an improvement in commodity prices, the cost of inputs is erasing profits.
“I mean everything is more expensive today than what it was a few years ago. Machinery is more expensive, land is more expensive, cash rents are more expensive, labor’s more expensive, taxes, interest rates, seed costs, fertilizer costs. I can’t find a single line-item that’s more affordable today than it was a few years ago.”
Newton says Farm Bureau supports efforts in Congress to provide another round of economic assistance to farmers.
EDITOR’S TAKE:
For months we have been hearing experts and industry insiders bemoan the fact that expenses are problematic for farmers/ranchers. And for a good amount of that time, commodity crop prices were nothing to write home about, further compounding the issue. Now, with fall harvest just over the horizon, diesel and fertilizer prices are once again in the spotlight. Profit margins are at best very slim, but more likely for many farmers they are negative. That is why they are looking towards Washington D.C. and Congress to provide them with some support.
You too can provide some of that much needed support if they purchase or lease a new or qualified used truck – it’s called AgPack®! With nearly $50,000 in exclusive rebates and discounts on products farmers/ranchers need and use, this program can significantly lower their operating costs. It is an amazing opportunity for you to provide farmers/ranchers with savings that can make a difference to their bottom line.
