Rising soy and wheat prices boost farm income, but could spell higher food costs
After six years of depressed commodity prices, the markets for soy, corn, and wheat are heating up again, largely driven by increased exports to China. Combined with massive subsidies during the Trump administration, the Department of Agriculture estimates that U.S. farm income reached a near-record high last year even as the coronavirus pandemic upended the nation’s food supply chain. That means farmers are buying new equipment, making long-delayed repairs, and investing in more expensive crop inputs like seed and fertilizer, according to the Wall Street Journal. On the flip side, some say, the hot market could also lead food manufacturers to increase prices at the grocery store.