News

USDA and Justice Department will evaluate ag inputs

Ag Secretary Brooke Rollins says high input costs are affecting farmers across the United States.

“U.S. farm production inputs all cost so much more today than they did under the last Trump administration,” she says. “Seed costs up 18 percent. Fuel and oil up 32 percent. Electricity costs up 36 percent. Labor costs up 47 percent. The cost of vehicles and machinery, up 45 percent. Interest expenses up by 73 percent and fertilizer costs increased 37 percent.”

The USDA and the U.S. Department of Justice signed a memorandum of understanding this week to “protect America’s farmer and ranchers from the burdens imposed from high and volatile input costs and ensuring there are competitive markets.”

Rollins continues “the antitrust division of the DOJ will work hand-in-hand with the USDA, effective immediately, to take a hard look and scrutinize competitive conditions in the agricultural market place, including antitrust enforcement that promotes free market competition.”

She says high interest rates make the situation worse and while last week’s cut from the Federal Reserve was positive…”The Fed needs to keep lowering rates so farmers and rural communities can finally see relief.”

Rollins made the comments at the Ag Outlook Forum in Kansas City, an event presented by the Kansas City Agribusiness Council and Agri-Pulse Communications.