Farmers Still Seen Making Money Despite Soaring Fuel, Fertilizer

Crop prices have risen more than enough to cover the higher costs, Kansas City Fed says

Winter wheat in a field during harvest in Pawnee, Oklahoma, U.S., on Wednesday, June 24, 2020. Soybean, corn and wheat futures in Chicago trimmed losses after President Donald Trump said the phase one trade deal with China is “fully intact” after his adviser Peter Navarro sowed confusion with comments interpreted as a decision to end the agreement.Photographer: Nick Oxford/Bloomberg
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Farmers are still making money despite the higher costs for fuel and fertilizer, as crop prices have risen even more.

That’s the view of Federal Reserve Bank of Kansas City researchers, who see Russia’s invasion of Ukraine have “long-lasting” effects on the commodity markets. “Disruptions associated with the invasion have contributed to increases in commodity prices, which could support commodity-producing regions and businesses,” they said Monday in a report.