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.

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