Inflationary Pressures Abound for Farmers in 2022

Inflationary pressures will continue to impact the bottom lines of farmers throughout 2022, according to economists at the Iowa Renewable Fuels Summit in Des Moines, Iowa this week. The expectation is that corn and soybean demand for renewable fuels will flatten this year, though demand from China could support corn prices in the coming months. Though a small amount of inflation is generally good (right around 2% to 3%), a potential inflation rate this year of 7% would start to strongly impact agriculture. Ernie Goss, chairman of regional economics at Creighton University in Omaha, NE advised producers to borrow money now if needed and to do so on a fixed rate, not an adjustable one, as rates will be rising in the near future.

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