Recent data from the Bureau of Labor Statistics shows that inflation is slowing, though farmers and ranchers are still facing many other economic challenges. Bernt Nelson, an economist with the American Farm Bureau Federation, said this economic squeeze has been going on for several years.
"So if we look at USDA’s recent price indexes for crop producers, the index for our prices paid for supplies, repairs, inputs, things like that, has been higher than the index for prices received for our crops grown over the last five years, and the gap for these prices received and prices paid has grown particularly wider since 2023," Nelson said.
Nelson said farmers are also trying to balance lower commodity prices with rising interest rates.
"For many, that means losses for three years in a row," Nelson said. "These losses have increased credit use in the industry, all while interest rates have climbed. This results in a rising amount of money being spent on interest that services debt, and it adds to the bleeding that's already being felt for crop losses on our farmers’ balance sheets."
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