By Scout Nelson
The Nebraska Farm Bureau (NEFB) is urging policymakers to adopt measures that protect the profitability of farmers and ranchers facing rising costs and economic uncertainty. NEFB President Mark McHargue said higher input expenses, elevated interest rates, lower commodity prices, trade challenges, and recent natural disasters have created significant financial pressures for agricultural producers.
McHargue emphasized that maintaining profitability is critical to ensuring the future of family farms and ranches. He said Nebraska Farm Bureau remains actively involved in policy discussions aimed at supporting long-term sustainability in agriculture.
“Farmers and ranchers are optimists. We understand the cyclical nature of agriculture. That said, protecting profitability is the most important thing we can do to ensure there is a next generation of agriculture producers,” said McHargue.
A major concern for producers is the sharp rise in fuel costs, with diesel prices exceeding $6 per gallon during harvest season. Higher fuel expenses are increasing operating costs for both crop and livestock operations.
Matt Jedlicka, a Nebraska Farm Bureau state board member and cattle feeder, said rising diesel prices are also driving up transportation and fertilizer costs, placing additional strain on already tight margins.
The organization has called on elected officials to explore solutions for reducing excessive fuel costs and easing financial pressure on farmers and ranchers. Farm Bureau leaders say affordability of essential inputs remains a key issue across the agricultural sector.
Nebraska Farm Bureau is also closely monitoring state tax policy discussions, particularly proposals that could affect property tax relief. McHargue said the organization remains committed to preventing policy changes that would increase tax burdens on producers.
“We recognize the budget problem, but we simply can’t afford to go backward with property tax relief,” said McHargue.
The organization is strongly opposed to eliminating sales tax exemptions on agricultural inputs such as seed, fertilizer, machinery, equipment, and crop protection products. Farm Bureau leaders argue that additional taxes would further reduce producer profitability.
Lance Atwater, a Nebraska Farm Bureau board member and farmer, warned that taxing agricultural inputs could place additional financial pressure on producers already facing shrinking margins.
“If the Legislature were to tax agriculture inputs such as seed, fertilizer, crop protection tools, machinery, and equipment, it would only further shrink those margins and opportunity for profitability, potentially putting producers out of business,” said Atwater.
Beyond tax issues, Nebraska Farm Bureau supports expanding market opportunities through livestock growth, biofuels development, year-round E-15 access, and stronger international trade opportunities. The organization also continues to advocate for reducing unnecessary regulations and preserving access to important crop protection products.
According to USDA projections, farm production expenses are expected to increase further in 2026 because of higher fuel, fertilizer, and livestock costs. Nebraska Farm Bureau says its focus will remain on policies that strengthen profitability, support farm families, and ensure a strong future for agriculture in Nebraska.
Photo Credit: nebraska-farm-bureau
Categories: Nebraska, Crops, Livestock