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UofA Ag Economists Highlight Input Cost Pressures

The University of Arkansas System's Division of Agriculture economists recently described the economic pressures facing Arkansas farmers as a perfect storm when it comes to input costs. A combination of supply chain disruptions, production challenges, government regulations, and war, have severely disrupted the marketplace for all agricultural inputs. The result is lower supplies and substantially higher costs for inputs including seeds, fertilizer, fuel, natural gas, crop protection products, equipment, transportation, and more. While higher commodity prices help offset the rapidly increasing costs of production, the rising costs related to production cut into potential profits and increase risk related to adverse weather or other potential threats to the 2022 crop.

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