U.S. farmers feel impact of Biden’s inflation

January 18, 2022 Amber Coakley US 0

FILE - In this April 20, 2020, file photo, a farmer is silhouetted by the setting sun as a field is planted near Walford, Iowa. Thanks to the government paying nearly 40% of their income, U.S. farmers are expected to end 2020 with higher profit than 2019 and the best net income in seven years, the Department of Agriculture said in its latest farm income forecast. Farmers faced challenges throughout 2020 that included the impact of trade disputes; low prices that drove down cash receipts and weather difficulties. (Jim Slosiarek/The Gazette via AP, File)

FILE – In this April 20, 2020, file photo, a farmer is silhouetted by the setting sun as a field is planted near Walford, Iowa. (Jim Slosiarek/The Gazette via AP, File)

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UPDATED 9:16 AM PT – Tuesday, January 18, 2022

Additional food price inflation could be on the horizon as rising input costs hammer small farmers. U.S. agricultural producers are reeling from Joe Biden’s inflation due to skyrocketing fuel and fertilizer costs.

A poll by Purdue University found fertilizer prices are expected to increase by 12 percent after a 100 percent increase in costs over the past year. Meanwhile, fuel prices rose more than 50 percent last year.

Farmer sentiment weakens as production cost concerns mount. Read the full Purdue University/@CMEGroup #AgBarometer report at https://t.co/zyUA9Pp9qZ. pic.twitter.com/QOlztDTufR

— Purdue Center for Commercial Agriculture (@PUCommercialAg) December 7, 2021

Market analysts say small farmers are hit the hardest by surging inflation as they remain over-leveraged, under-capitalized and facing labor shortages. Small farms account for 89 percent of farms in the U.S. and they make up 21 percent of agricultural production value.

Economists expect rising input costs to pass on to consumers, pushing foods prices even higher and making more people reliant on food stamps as well as other government handouts.