August 2022

Could Higher Prices Boost U.S. Grain Farm Income?

This publication is a part of:

Collection: On Point

Abstract

The conflict in Ukraine has notable impacts on the agricultural sector. As Russia, Ukraine, and Belarus are important global exporters of wheat, corn, barley, and agricultural fertilizers, anticipated supply disruptions of these commodities caused their prices to skyrocket. For U.S. farmers this could translate into rising input costs and lower returns. However, limited fertilizer imports and higher corn and wheat prices are expected to increase U.S. grain farm revenue to a larger degree than higher fertilizer and fuel costs will increase grain farm expenses, thereby increasing total grain farm net income.

Author:

Genevre Reardon