Not just fuel, but higher fertilizer, machinery and labor costs, coupled with more debt and higher interest expenses.
Let's see what the American Farm Bureau thinks:
"One of the clearest measures of the changing farm economy is the relationship between the prices farmers receive for their products and the prices they pay for what they need to grow their crops. For crop farms, USDA’s prices paid for production inputs index stood at 110.8 in July 2018 and reached 153.4 in July 2026, an increase of more than 38%. Over the same period, the prices received for crop products index increased from 86.5 to 107.0, a gain of about 24%. This widening difference helps explain why higher commodity prices do not necessarily mean stronger margins. When input costs rise faster than the value of what farmers sell, break-even prices increase and producers have less room to absorb market declines or unexpected expenses. Productivity gains can offset some of these higher costs for growers able to increase yields, while producers facing lower yields experience even greater margin pressure."
https://www.fb.org/intel/markets/the-farm-economy-has-changed-since-2018
That’s all from June, well before the market rally.
I also clearly addressed the input prices that have been high since early in Biden’s term. They aren’t coming down any time soon. They’ll track right with rising commodity prices too.
China is buying beans, corn exports are up. Prices are up considerably year over year. That’s good.
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