Inflation affects everything we do, from buying groceries to waiting on a part to come in for the air conditioner you need to fix. In March 2023, the federal government reported that inflation was down to 5 percent. However, many farmers are not seeing those numbers when it comes to their industry. In today’s blog from Dark Hammock Legacy Ranch, we take a look at how inflation impacts agriculture and how it trickles down to the consumer. For more up-to-date information on ranching and ag products, visit our blog.
What Affects Inflation
Many factors have contributed to rising prices. Farmers saw refineries get destroyed during hurricanes. The war in Ukraine also had a big impact on nitrogen and fuel. Nitrogen is a major component of fertilizer, and they need oil from Ukraine and other places to power their farm equipment. Taking those sources out of commission puts a big strain on the other suppliers, leading to increased prices due to supply and demand.
Cutting Costs
To counteract high inflation, ranchers, just like the average consumer, are working to cut costs. That means carefully designing their days to make the fewest amount of trips on the tractor that are absolutely necessary. It also means turning to alternatives for fertilizer. For those who typically bought NPK in bulk, they might be trying manure. Some are even cutting back on fertilizer altogether in their hay fields. Learn more about how our cattle are raised by visiting us on an agritour.
Trickle Down
When feed, like corn and soybeans for conventionally-raised cattle, goes up in price, you’ll see higher prices for the consumer as well. Same goes for the price of fuel, land, or fertilizer. One way you can get the best value out of your money is to buy directly from the supplier. This helps eliminate additional costs, and will get you a fresher product.
Our ranchers at Dark Hammock Legacy Ranch are committed to providing you with quality products at a good value. We appreciate the support from the community, and look forward to continuing to serve you in the future.
