Agriculture Week 2022 - Where We Stand
Agriculture Week seems an appropriate time to update our customers on the state of American agriculture and in particular life at Red Land Farms.
As prices of goods and services are rising around us, we think you need to know that prices are rising like crazy here on the farm too. We’re paying record high prices for everything from fertilizer to seeds to fuel to equipment parts and labor. Unfortunately this means that’s your prices will continue soar for products in grocery stores and in home linen and clothing stores.
A Family Business
Mark and Cassandra Yeager, along with their two sons, Mark Yeager, Jr. and Joe Yeager form the partnership behind Red Land Farms which produces the cotton that makes Red Land Cotton’s sheets, quilts, towels, duvets and blankets.
Running a family farm that spans 3 generations, Mark Yeager, Sr. has seen many ups and downs in agriculture but this current rising inflation situation may prove to be the most challenging of his career.
Rising Prices
In Spring of 2021, Red Land Farms paid $19 a gallon for various herbicides. This year that price tag is $50. Fertilizer prices are rising too. Last year’s price of urea was $400 a ton. The current price is $1,000 a ton. A Wall Street Journal article says that fertilizers prices may show as much as a 200% increase, which is an all time high. Some seed producers are estimating a 10% rise in the last quarter.* Large tractors and corn combines and cotton pickers run on diesel fuel. This year we’re paying $3.11 per gallon. That’s double the price to fuel the 2021 crop and it looks like there’s no end in sight for rising fuel prices.
Equipment parts are incredibly hard to find due to supply chain issues and labor shortages. Even when the parts you need can be located, the prices are much higher than in years past.
“Labor costs are rising because if you have a good, talented employee, you have to pay competitive wages to keep the employee. There is a serious shortage in qualified farm labor too. That drives the price of wages up because talent can always find a job in other areas.” What are the qualities needed for good farm employees? “Someone who can deal with the long seasonal work hours and experience driving large farm equipment is hard to find. Now farm employees need to be familiar with computers and able to learn to use high technology GPS programs.” says Mark Yeager, Sr.
Even though inflation is driving crop prices to higher levels, the cost of supplies to make the crops is going to make it difficult for farmers to turn a profit.
So what are farmers to do?
“ We’re going to try to make the best decisions we can in applying fertilizer and seed selection and make the best agronomic decisions possible to put ourselves into the best position possible to make a profit.” says Mark Yeager.
As far as financial strategies, Mark says “Cash is KING. We’ll try to borrow as little as possible and try to keep a close watch on every step of the crop process. A farmer’s greatest fear is to pay these high input prices and then possibly see the commodities market crash. There’s nothing we can do to stop it. It’s entirely out of our control.”
If you’re a praying person, send up a prayer for our country and the American farmer. We need all the prayers we can get. Buy American too. While we’re all hurting from this crazy inflation, remember to support your neighbors with your purchases as well as your prayers.
*Sourced in article by Patrick Thomas FARMERS FEEL THE SQUEEZE OF INFLATION, Feb.15th Wall Street Journal
Kelley P
We are such a huge fan of Red Land Cotton, the state of AL and America. We just completed our first full set of sheets from y’all – doing a piece at a time when we can. We also have the quilt. Love all of it and plan to support you in future. Our prayers are with all farmers and all of us being impacted by the very poor decisions of people who aren’t impacted by those decisions! God help us all to get through this or go home with Jesus soon. Kelley & Bill
Deb
Love my Red Land merchandise and find your blog very informative. Tougher times help us focus on getting quality and budgeting so that we can support each other as much as possible. May all good come to you!!!!!
Patricia Jensen
We are a 4th generation row crops farm in California. We are also feeling the crunch. We just need to remind people that farmers Cloth and Feed the world.
We will keep you all in our daily prayers
and God willing we will get through this trying time. Keep up the wonderful job you are all doing and continue making beautiful cotton products.
Karen Nichols
My prayers are with you as well as our country. I try to buy from America in all that I purchase. I support my local businesses in my area as well.
Shelly Jurist
I want to thank you for continuing the farming business. I appreciate your families dedication. We have purchased a few items and they are wonderful. We are a trucking business and yes we know the issues you speak of. We not only haul the goods, we have a shop to repair the trucks hauling the goods, we have service trucks and heavy duty wreckers to go out and help these truckers get their loads to where they need to deliver. We are feeling the sting in fuel prices, non available parts, the labor pool is almost gone (no one wants to work for their money, they would rather sit home and collect). Anyway, we understand, we have many friends who are farmers and work on their equipment. We continue to pray for this wonderful country. Keep up the good work.