b"Impacts of Inflation cial performance this year to worsen compared to last year rose Due to COVID-19, supply chain disruptions and higher laborfrom 29% in April to 38% in May, shared the report.costs, farmers have seen a greater rate of inflation. Farm production expenses have increased 6% in 2022, fol- Are Fertilizer Prices Decreasing?lowing a 12% increase in 2021, according to the American FarmBoosted fertilizer costs and feed contributed to a $55 billion Bureau Federation and Jessica Schulken, principal at the Russell(14%) growth in 2022 farm production costs according to the Group. The rate of inflation has made it increasingly difficult for2022 FAPRI U.S. Agricultural Market Snapshot from April, but growers to budget accordingly. some officials believe the market may have flipped.In the past, weve always been able to budget and be fairlyWhile producers are unquestionably facing higher prices for close on what those input costs are. But in todays environment,inputs, it is less clear how high input prices are translating into with the rate of inflation going at such an astronomical rate, thatincreases in the cost of production. For example, some produc-makes it super difficult. We are getting caught off guard a lot ofers locked in input prices last year before the significant run-up in times on things that we think are going to cost a certain thing,prices, and we expect that most producers will reduce input use and really costs a lot more than that, Jared Balcom, president ofin response to higher prices, according to a report from Texas NPC, says. A&M Universitys Agricultural and Food Policy Center (AFPC).Were having to be very nimble and adjust how we growThis change in market would be great news for farm-crops and how we do different things. Its not just inputs oners and could potentially allow them to cut production costs. crops. Everythings getting super expensive and so its becomingUnfortunately, not all officials are optimistic that a decrease in very, very challenging for us to navigate that on a daily basis. fertilizer costs is on the horizon.Ending stocks for wheat were the tightest since 2013/14 forFertilizer accounts for 36% of a farmer's operating costs for the June-May marketing year, according to USDAs Wheatcorn, and 35% for wheat. These elevated prices could have impli-Outlook: June 2022. The season-average farm price (SAFP) forcations for crop production in 2022 and 2023, shared the USDA 2022/23 is predicted at a record $10.75 per bushel. International Agricultural Trade Report from June 30, 2022. The Farmers are not nave to the challenges 2023 may bring dueRussian invasion of Ukraine has exacerbated the already limited to inflation. Purdue Universitys Ag Economy Barometer for Junefertilizer supply situation and has triggered import-export restric-7 displayed a dip in the percentage of producers who believetions that will compound shortage concerns.their farm financial performance will improve.While farmers might have been able to avoid the surge in The percentage of producers who expect their farms finan- fertilizer prices, there are no promises that 2023 agricultural pro-duction decisions will get any easier or cheaper.Restoring theFarm Lending TrendsAgriculture finance could be shifting as nontraditional forms of lending gain market share.native landscape Nontraditional doesnt mean old or new (forms of lend-ing), said Jenny Ifft, an agricultural economist at Kansas State University. Some types of nontraditional finance are the result of experience gained over decades of serving farmers, such as implement dealer finance, while others are startups that are test-ing new lending models.Nontraditional financing could be up to 25% of farm lend-ing, according to Ifft and colleagues from Purdue University and the USDAs ERS. Nontraditional lenders usually fall under one of three categories, according to Ifft: vendor finance, high-volume branchless lenders and collateral-based lenders.Currently, Im not highly concerned about the risk associated with nontraditional finance. The non-traditional lenders I have interacted with and studied largely have robust business models. I am concerned that it is difficult for policymakers to track and measure some types of nontraditional finance, she added.In addition to financing alternatives, farmers contemplating nontraditional sources for lending need to think about inter-https://bit.ly/ est rates, loan terms and long-term relationships with lenders ErnstSeedWorld through the instability of the farm economy.Between innovation from within agriculture, external capital 800 - 873 - 3321 (lenders) seeking to invest in agriculture, and the overall strong sales@ernstseed.com farm economy, right now there are many different lenders com-peting to serve production agriculture, concluded Ifft.SW48/ SEEDWORLD.COMSEPTEMBER 2022"