Ag Secretary Brooke Rollins says high input costs are affecting farmers across the United States.
“U.S. farm production inputs all cost so much more today than they did under the last Trump administration,” she says. “Seed costs up 18 percent. Fuel and oil up 32 percent. Electricity costs up 36 percent. Labor costs up 47 percent. The cost of vehicles and machinery up 45 percent. Interest expenses up by 73 percent and fertilizer costs increased 37 percent.”
The USDA and the U.S. Department of Justice signed a memorandum of understanding recently to “protect America’s farmers and ranchers from the burdens imposed from high and volatile input costs and ensuring there are competitive markets.”
Rollins continues “the antitrust division of the DOJ will work hand-in-hand with the USDA, effective immediately, to take a hard look and scrutinize competitive conditions in the agricultural marketplace, including antitrust enforcement that promotes free market competition.”
She says high interest rates make the situation worse and while the recent cut from the Federal Reserve was positive, ”the Fed needs to keep lowering rates so farmers and rural communities can finally see relief.”
EDITOR’S TAKE:
Not sure what can be done legally to bring down input costs, but just knowing someone is taking time to study and investigate what might be possible is a very good sign. Farmer-based purchasing groups have been helpful in keeping the cost somewhat under control for certain products. That said, geo-political unrest, tariff uncertainty, and lower commodity prices have also played a role in determining what happens with the expense side of the ledger. Increased land values have also led to higher rented land costs. Hopefully this latest attempt to engage in examining the root causes of higher input costs will pay dividends in the end.
In the interim, make sure you emphasize the huge amount of savings available through AgPack®. Nearly $50,000 in exclusive rebates and discounts are available when that farmer/rancher purchases a new or qualified used truck or SUV from your dealership. And remember, not only is AgPack® stackable on top of any other incentive programs, it is PER VEHICLE! Buy two trucks, get two AgPacks®! We have one customer who received 17 AgPacks® by purchasing that many vehicles. Talk about keeping input costs down….
