According to the latest Purdue University/CME Group Ag Economy Barometer twice as many producers are worried about high input costs as they are declining crop and livestock prices.
Jim Mintert is an ag economist and head of Purdue’s Center for Commercial Agriculture. “If we had a longer data set, or have been asking this question for the last 25 to 30 years, I feel pretty confident in saying that that would be topsy-turvy,” he says. “We would see more people worried about crop and livestock prices and fewer people worried about higher input costs than what we’re seeing today.”
He tells Brownfield the extreme volatility the ag industry has experienced in the last couple of years is the likely culprit. “Even though some of the key input prices have come down over the past year, they’re still at elevated levels if you compare it to a longer-term history,” he says.