FOND DU LAC (NBC 26) — Tony Schmitz is a fifth generation farmer whose family farm has spent 126 years in business.
He says farming can be difficult, especially when farmers are at the mercy of many economic factors.
"There are obviously a number of issues at play," Schmitz said. "Which are international and global issues."
More specifically, the war overseas with Russia and Ukraine as well as the Iran war.
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Schmitz says consolidation of farms has been more common.
As older farmers choose to exit the business or simply just don't want to juggle the increase in costs.
"There is just fewer people milking larger numbers of cows," Schmitz said.
He also indicated farmers that have contracts with diesel suppliers are now waiting before negotiating new contracts at higher rates. He says staying prepared is key.
"Set yourself up with a team of people that can advocate for you," Schmitz said. "Look at these market prices and market trends and see if they can help you find a contract out there that makes sense."
Professor David Fuller, who teaches economics at UW Oshkosh, said farmers will have to balance that decision of re-negotiating their contracts or staying at where they are.
"This could be a relatively short lived blip," Fuller said. "With various things that have happened in the supply chain. Mostly farmers and producers will feel it more than the consumers."
But if these higher costs do stick around, Fuller said consumers will start feeling the trickle-down effect in the coming months.
