ROCK ISLAND, Ill. — As the cost of machinery continues to go up for farmers, they are becoming concerned that prices of goods will not be able to keep up.
On Sunday, Jan. 15, farmers attended the Quad Cities Farm Show to see the latest and greatest in farm manufacturing and technology. Not only are farmers feeling the affects of inflation, but sellers of manufacturing are struggling as well.
"Because this item is a lot of steel, the price increases were phenomenal. For a while we just couldn't keep up," said Bruce West, owner of West Enterprises.
One local farmer has already begun preparing for when crop prices drop. Steve Hasselman produces grain and already has bought himself a safety net if the price of grain decrease.
"I have bought more crop insurance, a little higher protection there. It's more expensive, but really, you you can't leave yourself uncovered with these high input costs."
Lending officers are also urging farmers to take financial precaution.
"Just trying to mitigate risk by not exposing themselves too terribly far on capital purchases, whether that be real estate or equipment," said Tim Fritz, senior VP and chief lending officer at BankOrion.
With farming being a global market, any conflict overseas such as the war in Ukraine, can greatly impact prices back home. The main concern now is the falling prices of farming products, but the cost of machinery not coming down with it. It's a situation that could make it very hard for farmers to reach their bottom line.