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Fertilizer and fuel costs already weighing on 2027 decisions

As harvest picks up across the Midwest, many farmers remain concerned about input prices for next year’s crops.

Casey Kelleher, who farms in southeastern Wisconsin, says record high diesel prices and uncertainty about where they might go in the future are weighing on his budget.

“You could have booked a bunch or prepaid for some, but you never thought this was coming.”  He says, “We kind of done what we’ve done in the past, and this year it wasn’t the right decision.”

AUDIO: Casey Kelleher – Wisconsin farmer

Central Illinois farmer Ken Franklin tells Brownfield the recent rally in the commodity market is softening the blow a bit, but margins are still tight.

“The phosphorus is, I think, the highest ever on the ratio to corn and bean bushels.”  He says, “Potash is more of a reasonably priced fertilizer right now, so we can kind of move some of the dollars around to different places.”

Ag economist Gary Schnitkey, with the University of Illinois, says as long as geopolitical tensions remain high, input costs such as fertilizer and fuel aren’t likely to come down.

“Costs are high and likely rising, and that causes us to think there’s downside risk,” he says.

Both producers say managing input costs amidst the uncertainty has added another challenging layer to finding profitability on the farm.

AUDIO: Ken Franklin – Illinois farmer