ASA Testifies on Rising Input Costs Threatening Farm Viability

Caleb Ragland, president of the American Soybean Association and soybean farmer from Magnolia, Kentucky, testified today 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," Ragland said. "Soybean farmers are expected to net a $109 per acre market loss on their crop this year."

He 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," Ragland said.

During the 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.