USDA, Labor department investigating high farm input costs

The USDA and Department of Justice (DOJ) are investigating high farm input costs.

The agencies have signed a memorandum of understanding (MOU) to immediately begin jointly scrutinizing input costs for farmers.

U.S. farm production inputs are significantly more costly than four years ago, putting pressure on farmers’ bottom line. Between 2020 and now, seed expenses have increased 18%, fuel and oil expenses increased 32%, fertilizer expenses increased 37%, and interest expenses increased by a whopping 73%, Ag Secretary Brooke Rollins recently noted in a speech.

According to USDA, the MOU aims to “…protect American farmers and ranchers from the burdens imposed by high and volatile input costs — such as feed, fertilizer, fuel, seed, equipment, and other essential goods — while ensuring competitive supply chains, lower consumer prices, and the resilience of U.S. agriculture and the food supply,” according to a news release.

Under the agreement, DOJ’s Antitrust Division will work with USDA “to take a hard look and scrutinize competitive conditions in the agricultural marketplace, including antitrust enforcement that promotes free market competition.”

Earlier, Rollins said the USDA is examining high fertilizer costs and exploring options for farmer relief. The U.S. farm economy is saddled this year with low crop prices and trade disputes, according to a Reuters report.

“President Trump has made it clear: America’s farmers and ranchers will never be left behind,” Rollins said.

“The success of our farmers is a national security priority, and at USDA we are looking at every option to ensure the future viability of American agriculture. The last Administration’s policies drove up inflation and ignored the needs of farmers and ranchers while not opening new markets abroad. The cost of doing business for farmers and ranchers increased drastically, and commodity prices slumped. The Trump Administration is holding these companies accountable and will investigate why input prices have not come back down.”

Of the $10 billion authorized under the Emergency Commodity Assistance Program (ECAP), more than $8 billion has been delivered to eligible producers to offset higher input costs and falling commodity prices, Rollins said.