(Central Square) – The impact of inflation on Pennsylvania’s agricultural sector has been to exacerbate pre-existing problems, raise costs and squeeze business owners.
Since March, the monthly consumer price index in Pennsylvania has averaged 8.4%. Large amounts of federal spending, along with the Russian invasion of Ukraine, have meant rising prices for everything from raw materials to food and consumer goods.
The House Republican Policy Committee held a hearing Wednesday to understand the plight of the state’s agricultural businesses. As business owners struggle with rising costs, so does the public, many of whom are struggling economically
“Eggs are typically the least expensive protein,” said Chris Pierce, president of Heritage Management Poultry Services. “It breaks my heart when consumers can’t afford to buy eggs. We need to be able to provide all walks of life with affordable food, and the administration’s decisions have made that very difficult for all families.”
Rep. Martin Cowser, R-Bradford, emphasized that Pennsylvania’s natural resources can play a role in holding down energy prices.
“We have the resources here in the state to really lower the cost of energy, and we’re focused on that — we need to get more of our colleagues to focus on that because it’s a major cost driver for businesses across the state,” Causer said. .
Pearce noted another area in which he would like to see improvements in work performance.
“The best options for real immigration reform is that we have the ability to put people to work,” Pierce said. “There is work, but people here may not want to do it, and it’s not a question of salary. But eventually it will because we don’t have enough people.”
For some farmers, the question remains whether their children will take over the farm. Inflation makes the future of agriculture a riskier bet.
“We want our kids to be able to grow up and continue this lifestyle if they want to,” said Heather Lewis, a first-generation farmer in Lancaster County. “But inflation is difficult. You have this unknown sense of the future … but can we get ahead of the risk?”
Lewis noted that farm input prices have gone up by 25% to 100% and used the analogy of tightening a belt when the going gets tough.
“These are not easy times,” said Bill Beam, president and owner of Beam Farms. “Volatility is probably the most difficult thing to manage.”
Beam noted that his fuel costs had increased by $65,000.
“Energy costs drive everything,” he said.
https://www.indianagazette.com/news/state/inflations-toll-on-pennsylvania-agriculture-making-current-problems-worse/article_3a7d2b91-8e59-51b0-a3a1-2a551ce84300.html
