KEENESBURG, Colo. (KDVR) — Inflation is impacting farmers across Colorado and America. As consumers navigate higher prices on goods, farmers are also feeling the pinch. Prices on fertilizer and diesel are driving factors shrinking profit margins in the agricultural industry.
On 3,000 acres near Keenesburg, farmer Marc Arnusch and his son, Brett Arnusch, a fourth-generation farmer, are grappling with higher prices.
“It’s really tough on us in agriculture right now,” Marc said.
Brett echoed that sentiment.
“This year is really hard,” Brett said.
The father-son duo runs a diverse operation that includes grains for craft beer and spirits as well as feed for livestock. They depend on diesel, fertilizer and crop protection products for a successful season.
“A lot of the situation with fertilizer prices and energy prices is coming from countries banning imports from Belarus as well as Russia,” said Chris Hughen, University of Denver finance professor.
Inflation forces farmers to put crops ‘on a diet’
Farmers in Colorado have seen dramatic increases.
“Year over year, we’re seeing about a 300% increase in fertilizer and about 150% increase in farm diesel fuel right now,” Marc told FOX31.
The higher costs impact profit margins, forcing farmers to do more with less.
“We’re basically going to put our crop on a diet this year,” Marc said. “We’re going to invest in the amount of fertilizer we can afford and hope for the best.”
That strategy is even more difficult amid current drought conditions.
“We have to look at a lot more data this year to really understand what our conditions are going to be,” Brett explained.
Inflation began impacting the Arnusch farm about six months ago, Marc said. Relief is needed.
“We’ve probably seen peak inflation, which is really good news,” Hughen said.