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Excessive prices squeeze farmers heading into 2026
The president of the South Dakota Farm Bureau says prices stay excessive as farmers put together for the 2026 rising season.
Scott VanderWal tells Brownfield land rents are one of many largest bills, and farmers are struggling to barter with landowners.
“There are folks on the market who pays $100 or $200 an acre greater than most individuals. It’s a case the place landlords know what’s on the market and in the event that they’re comfy renting to the individuals who pay the large cash, it just about cuts everybody else out. It’s exhausting to get negotiation leverage.”
He says seed stays one other costly enter.
“Often these offers are based mostly on dates and you must signal an order and presumably pay for it by a sure date. Mainly, that’s rates of interest and reductions for early ordering. These reductions don’t stick round very lengthy and so they are likely to go away as time goes alongside.”
VanderWal, a crop and livestock farmer in Brookings County, says the upper enter prices squeeze revenue margins and cut back the money movement out there to repay loans, which is predicted to make it a difficult time on the financial institution for a lot of farmers this winter.
