And again, don’t blame workers and wages for inflation! Down on the farm, a new Purdue study finds that farm wages increased more slowly last year than they did on average annually over the preceding decade, while farm input prices roared upward last year much faster than they did during the preceding period of higher wage growth:
An index of agricultural production items, a broad measure of farm input costs, is up 15.6% over the past 12 months.
The cost of anhydrous ammonia has risen the most of any input included in the study, jumping 179% over the past 12 months. Potash prices have increased 107.5%, while prices for DAP, or diammonium phosphate, are up 51.4%. Diesel prices have risen 47.4%.
Meanwhile, seed prices have been relatively stable, rising just 0.2%, and farm wages are up 2.3%, well under the increase in the cost of living.
…By comparison, agricultural production costs rose an average of just 1.2% a year from 2012 through 2021, according to the study. Anhydrous ammonia prices rose by an annual rate of 2.3% while wages increased 4% a year over that 10-year period, and the cost of seed rose at an average annual rate of 1.2% [Philip Brasher, “Most Farm Input Costs Far Outpacing Inflation,” Agri-Pulse, 2022.04.27].
We’ve got to keep saying it to check the opposing lies: workers aren’t driving your prices up; their corporate overlords are.