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High input costs could keep farm margins tight into 2027

The chief marketplace officer with FCS Financial says high input costs are squeezing working capital and could keep farm margins tight into 2027.

Chad Roberts tells Brownfield the biggest cost increases are expected to be in seed, chemicals, labor and possibly cash rents. “No doubt our customers are looking at what inputs are going to cost them the availability of those input with all the disruptions going on in the global and the ag economy right now.”

Roberts says the farmers who are set up for success have a few things in common.

“Knowing your working capital position, that is critical in this environment. Looking at your numbers consistently, knowing what your cost of production is, knowing where your breakevens are, and looking at a very strong and consistent risk management plan is so critical.”

He says having a strong lender relationship helps, too.

FCS Financial hosted a FCS Financial Member Appreciation Day the Missouri State Fair.