Inflation is forcing Minnesota farmers to make changes
INVER GROVE HEIGHTS, Minn. -- From gas to groceries, Americans are feeling the stress of rising prices. A new report released Wednesday showed inflation surged 9.1 percent in June, the most since 1981.
Rising prices are also impacting Minnesota farmers. Kevin Freking stopped by Tractor Supply Company in Inver Grove heights Wednesday to pick up a few parts. He said inflation is impacting his 40-acre hay farm in New Prague, forcing him to make changes.
"This year it's everything, its fuel, fertilizer, herbicide," Freking said. "It's all the way down to the twine that we use, it's, costs have gone up on everything."
In 2020, Freking said it cost him around $75 to fertilize an acre of hay. This year, he said he received a quote of about $225-$250. For that reason, he decided not to use fertilizer, and risk a lower profit margin.
"I don't want to pass all the cost on consumers and put the stress on them, so I've been just basically going with a lower profit margin this year," Freking said.
As more farmers make cost cutting changes, Nathan Hulinsky, associate extension professor at the University of Minnesota Extension, said the impact is likely to trickle down to grocery stores
"Depends how dramatic these decrease in yields are could lead to further increases in food prices because there's less food going around," Hulinsky said.
Tractor Supply Company is still dealing with supply chain issues and have raised prices, too -- from chicks, to feed and fertilizer.
"[We] all live in the same world, so it kind of affects all of us, some hit a little harder than others," assistant manager Bren Petrofske said.
This year, the stress is compounded by Mother Nature, as rainfall totals continue to fall below average.
"We're also at mercy of the weather, and this year we're not getting the rain that we would hope for, so that's also putting a hurt on yields as well," Freking said.