ASA testifies on rising input costs threatening farm viability

WASHINGTON — Caleb Ragland, president of the American Soybean Association and soybean farmer from central Kentucky, testified before the U.S. Senate Judiciary Committee during a hearing titled “Pressure Cooker: Competition Issues in the Seed & Fertilizer Industries.”

Ragland told the committee that U.S. soybean farmers are facing a worsening financial outlook driven by high production costs and shrinking operating margins.

“Commodity prices have fallen by an average of 50% since 2022, at the same time farm production costs continue to skyrocket,” he said. “Soybean farmers are expected to net a $109 per acre market loss on their crop this year.”

Ragland warned that input inflation, particularly for seed, fertilizer, pesticides, fuel and equipment, has become one of the greatest threats to farm viability.

“Farm profitability for row crops like soybeans will continue to remain in peril if input costs remain static at current levels,” he said.

At the Oct. 28 hearing, Ragland urged Congress and the administration to take immediate action to reduce farm production costs and prevent additional family farm closures.

He outlined three urgent policy priorities to improve economic conditions for U.S. soybean farmers:

• Provide tariff relief on critical agricultural inputs such as fertilizer, seed, pesticides, machinery and parts.

• Finalize biofuel policy, including Renewable Fuel Standard volume obligations and 45Z Clean Fuel Production Credit guidance, to expand domestic markets for soy.

• Deliver targeted farmer assistance to help producers manage severe market losses and negative basis impacts.