Farm production expenses have climbed considerably faster than crop prices since passage of the 2018 Farm Bill. A recent analysis from agricultural groups shows the prices-paid index for crop-production inputs increased more than 38 percent between July of 2018 and July of this year. During the same period, the prices farmers received for crops increased about 24 percent. That widening gap means stronger commodity prices haven't necessarily translated into stronger profit margins.

Producers are also dealing with higher interest rates, equipment costs, farmland values and growing farm debt. Higher land values can strengthen farm balance sheets, but they also increase the cost of expanding operations or entering agriculture. Farm organizations point to those changes as reasons they believe federal farm policy should better reflect today's higher production costs and financial risks. The Senate Agriculture Committee advanced its latest Farm Bill proposal September 16.

By: NATHAN STUEDLEFarm production expenses have climbed considerably faster than crop prices since passage of the 2018 Farm Bill. A recent analysis from agricultural groups shows the prices-paid index for crop-production inputs increased more than 38 percent between July of 2018 and July of this year. During the same period, the prices farmers received for crops increased about 24 percent. That widening gap means stronger commodity prices haven't necessarily translated into stronger profit margins.Producers are also dealing with higher interest rates, equipment costs, farmland values and growing farm debt. Higher land values can strengthen farm balance sheets, but they also increase the cost of expanding operations or entering agriculture. Farm organizations point to those changes as reasons they believe federal farm policy should better reflect today's higher production costs and financial risks. The Senate Agriculture Committee advanced its latest Farm Bill proposal September 16.

Farm costs outpace crop prices