MORRISVILLE, N.Y. (WUTR/WFXV/WPNY) – Inflation is affecting many industries across the country, and believe it or not, it might even be affecting the prices you see at the grocery store.
“We are commodity producers and as commodity producers, we are price takers – what that means is that the market determines the price that we receive, we do not set our price,” said Dr. Sheila A. Marshman, Professor at SUNY Morrisvlle & Advisor at the New York Farm Bureau.
Dr. Marshman is referring to farmers – who are seeing increased input costs due to increased diesel, gasoline, and fertilizer prices.
“So, for the farmers, what’s happening right now is – their margins are thinner and that impacts profitability, which also means that the farmers may not be able to reinvest in their business,” said Dr. Marshman.
“Reinvesting in equipment that has advanced technologies, and it’s that advanced technology, that allows for the farmer to be more efficient, and efficiency leads to profitability.”
So, while the farmers are faced with increasing costs of production – this then trickles down to the everyday consumer.
“How does inflation affect the average working person?” said Dr. Scott Colby, Assistant Professor of Agribusiness at SUNY Morrisville. “Well, if they’re very low income it hurts them materially in their everyday life.”
He continued, “A lot of people have to make tough choices between feeding their kids, feeding themselves, and if you’re middle class, and there’s high inflation – typically it’s not a problem if wages are going up to match it, but we haven’t really seen wages going up substantially until recently.”
“So, if the wage increases keep pace with the goods price increases, then it’s not a problem.”
As always, we’ll keep you updated with any new developments.