Agricultural Economics Department


Date of this Version



Published by the Department of Agricultural Economics, University of Nebraska – Lincoln. Copyright 2010 Regents of the University of Nebraska.


Today’s farmers and ranchers face an unprecedented risk environment. Extreme price volatility has impacted the cost of inputs for producers, as well as the prices they receive for farm commodities. Livestock producers in the dairy, hog and poultry sectors have faced liquidations due to declining profits stemming from high feed prices and reduced consumer demand. The price of fertilizer has increased nearly 400 percent in the past three years, while the price of a bushel of corn, after extreme fluctuations, has settled at roughly the same price as three years ago. In response to the world economic conditions, agricultural lenders have increased their lending standards.