Nebraska Farm Bureau Focused on Protecting Producer Profitability; President Says Taxing Agriculture Inputs Would Harm Farm and Ranch Families

Nebraska Farm Bureau (NEFB) President Mark McHargue says the state’s largest general farm organization is focused on enacting policies to protect profitability for Nebraska’s farmers and ranchers who have faced numerous challenges in recent years. The comments were made during a Sept. 16, Husker Harvest Days event. According to McHargue, significantly higher input costs, higher interest rates, lower commodity prices, trade wars, and unsettled trade policy, combined with natural disasters like this spring and summer’s wildfires, have put many producers in difficult positions leaving them to make hard decisions.

“Farmers and ranchers are optimists. We understand the cyclical nature of agriculture. That said, protecting profitability is the most important thing we can do to ensure there is a next generation of agriculture producers,” said McHargue. “We’re engaging in numerous spaces to protect profitability.”

A spike in fuels cost is just the latest challenge as diesel fuel, a major input cost across all agriculture sectors, hit a record high exceeding $6 per gallon earlier this month. The price hike hit just as combines started rolling for harvest season, a period of substantial fuel use. NEFB State Board Member Matt Jedlicka, a farmer, cattle feeder, and member of the Colfax County Farm Bureau, said that the added costs will take a bite out of on-farm profits.

“The higher fuel and input prices are hitting home on both the farming and cattle feeding side. We’re coming into a period of a lot of cattle movement. We have calves going through sale barns heading to backgrounding lots. A lot of yearlings are hitting the feedyards now. Right now, I’m paying a surcharge to have our cattle hauled due to the higher diesel prices. It’s just a really bad time for the diesel price hike,” said Jedlicka. “We also we can’t forget that fertilizer costs are also tied to diesel and fuel costs. Talking to my supplier, we’ve seen nitrogen increases of $20 per ton over the last couple of months. We’re feeling the effects.”

During the event, NEFB called on elected officials to examine ways to bring down excessive fuel prices.

In remarks, McHargue said tax policy also plays a major role in profitability, specifically property taxes, given the land intensive nature of agriculture. While NEFB has worked with the Legislature to provide property tax relief for all Nebraskans, those dedicated state monies will likely face scrutiny this coming legislative session in the face of a projected state budget shortfall of $1 billion across the current and upcoming budget cycle.

“We recognize the budget problem, but we simply can’t afford to go backward with property tax relief. We are fully prepared to protect Nebraska taxpayers from any rollbacks that would lead to major property tax hikes,” said McHargue.

McHargue told attendees that elimination of state sales tax exemptions is also likely to be discussed in the upcoming state budget discussions and that Farm Bureau is adamantly opposed to the elimination of sales tax exemptions on agricultural inputs.

NEFB Board member Lance Atwater, a farmer, and member of the Adams/Webster County Farm Bureau, told attendees that taxing agriculture inputs could effectively put farmers out of business.

“As a young producer, I have a lot of conversations with my peers, and they continue to center around whether we can keep farming in an environment where input costs keep going up, but prices for our commodities aren’t keeping up. There’s constant volatility in the markets and our profit margins continue to shrink. If the Legislature were to tax agriculture inputs such as seed, fertilizer, crop protection tools, machinery, and equipment, it would only further shrink those margins and opportunity for profitability, potentially putting producers out of business. If the Legislature taxed inputs, I estimate that I’d pay 170% more in taxes than what I currently pay in property taxes,” said Atwater. “That’s money that wouldn’t be reinvested in my operation or be spent in the local economy. We need to make sure our elected leaders understand taxing inputs is just bad tax policy. It’s not good for farmers or rural Nebraska.”

McHargue also noted the importance of growing markets and expanding value added agriculture opportunities to help profitability. Farm Bureau’s support for growing Nebraska’s livestock sector, securing passage of year-round E-15 to boost ethanol use, securing trade agreements to sell more Nebraska commodities and goods internationally, and supporting growth in the biofuels and bioeconomy industry here in Nebraska were among other needs.

McHargue also pointed out that Farm Bureau is heavily vested in reducing unnecessary regulatory burdens and cutting red-tape to limit excess costs on farms and ranches.

“We have worked with the Administration to address regulations to limit federal authority over private land and waters, as well as rollback the EPA’s Diesel Exhaust Fluid (DEF) requirements. Today we’re working diligently to make sure farmers continue to have access to much needed crop protection products.”

“We want young people to know there is a future in agriculture, and they can come back to the farm or ranch. Farm Bureau is here to make sure Nebraska remains the best place in America to raise family and produce the world’s food, fuel, and fiber,” said McHargue.

NOTE:

On Sept. 3, the United States Department of Agriculture (USDA) Economic Research Service released updated estimates of U.S. farm production expenses for 2026. The report indicated the expense outlook has deteriorated significantly. USDA raised its 2026 total production expense forecast by $15.1 billion since February to $492.8 billion. Fuel and oil expenses are now projected to jump 28.8%, fertilizer expenses 15.3% and livestock purchases up 11.4% from the earlier forecast. The American Farm Bureau’s analysis of the report is available here: https://www.fb.org/intel/markets/usda-revises-farm-income-higher-but-costs-still-bite

*Detailed numbers for Nebraska will be released by USDA in November.