How Will High Inflation Affect Farm Costs in 2023?

FBN Insurance

Feb 09, 2023

What are farm costs going to look like in 2023? 

In our latest video, Kevin McNew, Chief Economist at FBN® discusses:

  • Input prices

  • Fertilizer prices

  • Chem prices

  • What to expect from interest rates. 

To discuss how this could have an impact on your crop insurance decisions, please visit

Watch Now

Audio Transcript

In 2022, farm inflation was off the charts. We saw higher fertilizer prices, higher chemical prices. We had interest rates starting to move up. 

What can farmers expect for 2023? I think the good news is we will see some moderation in terms of key inputs that farmers are buying this winter. Namely, we expect fertilizer prices to retreat a little bit off of the highest set in the spring. 

We do also expect chem prices to come down. We're seeing pretty dramatic return to normal valuations for active ingredients out of China. 

That is starting to make its way into price reductions in ag retail chem prices that farmers are paying now as they look to purchase inputs for 23. On the interest rate side, I don't think we're gonna see a back down in interest rates in 2023. 

Indeed, at the Fed's meeting next week, we'll likely see another round of interest rate hikes. Although the hikes should be much smaller than past hikes because we are starting to see consumer inflation drive lower. 

We are starting to see some slowdown in the US economy. So overall I think farm costs will be a little moderate from last year, but still very inflated compared to values that they were paying in 2021’s growing season.

Copyright © 2014 - 2023 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.

Disclaimer:  The purpose of the following material is to promote awareness of risk management concepts and to highlight risk management products, features, benefits and availability. This presentation does not provide full details of policy provisions or approved procedures. Producers should consult with a local agent for specific details and program requirements.

We are an Equal Opportunity Provider.  FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN membership is not required to purchase through FBN Insurance LLC, but certain features may only be available to FBN members. FBN Crop Insurance is currently offered in all U.S. states.

FBN Insurance

Feb 09, 2023

Take the next step to confident crop coverage

Fill out the form below or call us directly.

Insurance Designed for Your Farm
Our FBN agents find solutions for your crops, livestock, or even health.
You Need It. We Got It.
Shop online & get crop protection delivered direct.
FBN® Land Loans
Save thousands by financing your farm at a great rate.