Higher input costs are by far the No. 1 concern among farmers, but only a minority of them have altered their operations because of rising energy prices, according to a Purdue University poll of large-scale operators. The most common adjustment was to reduce tillage, said the monthly Ag Economy Barometer.
“Just over one-fourth of respondents said they’ve made changes in their farm operations in response to a sharp rise in energy costs,” said James Mintert and Michael Langemeier, who oversee the Barometer. “The top response, chosen by one-third of those making changes, was reduced tillage, followed by reduced nitrogen rates and/or changed application timing, which was chosen by 24 percent of respondents.”
Eleven percent said they had adopted or increased their use of no-till planting. A smattering of growers said they had installed solar panels or contracted for fuel.
The economy, including high inflation and fuel prices, was a major issue in the Nov. 8 midterm elections.
In the Purdue survey, conducted the week after the election, 42 percent of producers said higher inputs costs were their top concern for 2023. One-third of farmers said they expect input prices to rise at least 10 percent from 2022. Input costs have been the top concern for months.
The Barometer is based on a telephone survey of 400 operators with production worth at least $500,000 a year. USDA data say the largest 7.4 percent of U.S. farms top $500,000 in annual sales. The survey has a margin of error of plus or minus 5 percent.
The Ag Economy Barometer is available here.