Rising energy prices could hit farm profits

Rising energy prices in the U.S. are expected to take a bite out of Iowa farm profits this year. Midwest ag economist Al Christopherson says it’ll start with somewhat higher diesel prices, but won’t stop there.Christopherson says “The indirect costs and that’s going to show up in the price of fertilizer, etcetera, there you’re seeing prices that are two and perhaps three times what we saw last year.” Christopherson says increasing energy prices will also make it more expensive to transport crops and supplies and taking all of that into account, it’ll eventually be reflected with higher prices at the grocery store.Christopherson says the higher energy costs will likely force some Iowa farmers out of business. He says “Perhaps not directly, but at the same time for those who are operating on very thin margins and really most farmers are operating on very thing margins, it’s one more item that adds to the level of frustration. From time to time we hear producers make the comment, “You know, there’s got to be a better way to make a living than this.”