Inflation is hitting everyone, but what does it mean for the farm family? That’s coming up on This Land of Ours.
A study by the Kansas Farm Management Association shows that farm family living expenses jumped 14 percent higher last year to an average of $82,000. It’s significantly higher than the previous high of $74,000 in 2014 and the largest yearly change since 2000. Agricultural Economic Insights says tight farm margins starting in 2014 made farmers tighten their belts, and overall, producers benefited from an economy that had extremely low inflation rates through the 2010s.
The rising costs in 2021 could be attributed to broad inflation in the economy, as well as profitable conditions in farming. At least some of the 14 percent increase could be seen as a recovery after the three percent contraction in family living expenses in 2020.
AEI says the combination of inflationary price pressure and an improved farm economy resulted in significantly higher living expenses for farms, and many farmers will need to update their projections for 2022 and beyond.
The NAFB contributed to this story.
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Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.