Producer’s Seeing Negative Variance in Commodity Prices vs. Growing Costs

BY: Skye Root
POSTED: January 20, 2026
IN: General
SHARE

Recent USDA data highlights a growing imbalance producers are feeling every day in the field.

By October 2025, the Prices Paid Index climbed to 154.6, while the Prices Received Index fell to 120.5. Put simply:

• It now costs producers ~50% more to grow crops than it did in 2011

• Yet commodity prices are only ~21% higher over that same period

That 34-point spread is the widest gap we’ve seen in at least a decade.

This isn’t about short-term market volatility, it reflects deeper structural pressures: rising input costs, tighter margins, and increasing capital risk for producers and landowners alike.

📉 How are you seeing this margin compression show up in your operation or portfolio?

💬 What questions should the ag industry be asking right now?

Related Posts:
Potential On Farm Additional Revenue Streams

New income opportunities can be a good fit for a farm or ranch, but they still need to work with the operation. LandTrust gives landowners another way to generate income from their property through guest experiences. Before adding a visitor experience, consider: • What areas of the property guests could access • How hosting would fit the… Potential On Farm Additional Revenue Streams

Employee Spotlight: Sonora Zaugg

Team Spotlight ➡️ Sonora Zaugg, Farm Management Associate Meet Sonora, a vital part of our team here at Root Ag Advisory. She plays a key role in supporting both permanent and row crop operations, with hands-on experience in asset management, budgeting, financial reporting, and property oversight. Lately, she’s been serving as a water liaison, representing… Employee Spotlight: Sonora Zaugg

Root Agricultural Advisory
2670 S. Eagle Rd. Meridian ID 83642
(208) 753-2333   info@rootagadvisory.com

© 2016-2026 RootAGAdvisory.com. All Rights Reserved
Licensed: Oregon, Idaho, Washington, Utah, Colorado, California
OR #201207960; ID #40250; WA #25488; UT #6366288; CO #ER100082868; CA #02100556