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Economist says farm economy recovery unlikely amid record high input costs

An ag economist says the farm economy is not likely to recover anytime soon.

David Widmar with Agricultural Economic Insights says higher input costs are adding additional financial strain.

“A few months ago, it felt like we were closer to equilibrium,” he says. “We’ve seen this energy shock really kind of create all sorts of problems on the expense side of the ledger. Can we also get ourselves to where we can make some profits without any of these ad-hoc programs?”

He tells Brownfield inflation has started to moderate, but, “We haven’t seen in the data prices of equipment and prices for parts coming down. It’s still at an annual positive increase. Inflation is not increasing in the double digits, but we’re just increasing at a slower rate.”

Widmar says without broader shifts in price structure and overall inflation, farmers won’t likely see lasting cost savings.

AUDIO: David Widmar, AEI