Impact of Inflation on Farmers
It’s no surprise that federal interest rates have skyrocketed and so have the cost of agriculture inputs. Pinion Ag Business Advisor Thomas Eatherly says as expenses are coming to an end this year, there are some major areas that are coming in over budget.
Eatherly… “Fuel was a big one. As we all know and saw firsthand, fuel costs rose tremendously. And as we're tying-out our numbers, overall, it looks like we will be around eight to 12 percent over budget. And then there's obviously additional factors depending on what graphical location your operation is located, as far as irrigation, grain drying, and trucking. Those are all major costs that can affect those numbers throughout an operation.”
Interest rates, crop inputs and equipment repairs all came in over budget as well. Pinion is helping farmers prepare for inflation rates that are predicted to remain high for the foreseeable future.
Eatherly… “We work with producers all over the country and we can draw from our collected data and information to help inform our clients on current trends, best practices, and share relevant insights to their operations. Being in the field with clients allows us real time ability to help clients navigate through the challenges of today. And Pinion helps farms access their margin management, which is arguably the most important factor going into 2023.”
Eatherly said inflation is impacting everything on the farm.