Here's the way farming economics works.
SPRING is time to plant. Farmers hop on their tractors, plant seeds -- all of which involves the cost of seed, fertilizer, weed control, and diesel fuel for the tractors that make several passes over the fields.
Who pays for the seed, fertilizer, weed control chemicals, and diesel fuel? If the farmer has a large bank account, s/he pays cash. But most farming operations go to the local bank and take out a seasonal loan, which they pay off when the crop is harvested in the fall, which means the farmer pays interest on the loan all through the summer from whatever cash s/he has on hand.
However, in increased cost of diesel drives up the price of groceries because of production and transportation costs to produce the food and get it to market. Households cut back on consumption. Demand for farm produce drops. Farmers don't get the same price at harvest time.
Meanwhile, the cost of diesel has continued to go up, meaning the farmer is paying more for every time s/he drives a tractor over the fields for weed control, fertilizer, and harvest.
Comes time to harvest and pay off the crop loan, the crop doesn't not pay off the loan, or the crop pays off the loan but does not leave the farmer with any profit . . . .
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