Center for Agriculture and the Economy
Leveraging expertise from the Kansas City Fed, the Center provides timely analysis of industry developments and conducts ongoing research on the agricultural economy.
Input Prices in Food and Energy Sectors Rose Sharply in April
May 8, 2026
By Cortney Cowley and Chase Farha
Although prices for inputs rose at most manufacturing and services firms in April, the pace of increase in prices was faster for firms in the food supply chain. Input prices in energy and chemical sectors, which produce and distribute products for agriculture and other industries, also rose at a rapid pace. The index for the price of raw materials among food, energy, and chemical manufacturers rose from 29 in March to 74 in April, which was the fastest rate of increase since February 2022 (blue line in the left panel). In the services sector, the index for input prices at grocery stores, restaurants, and gas stations (blue line in the right panel) has remained comparably higher than other establishments in recent years and increased sharply in April even as the index was relatively steady at other firms. Contacts reported that recent cost pressures were primarily due to increases in transportation expenses related to a spike in freight and fuel prices and many also mentioned it was getting increasingly difficult to pass cost increases on to customers.
Note: The diffusion index is calculated as the percentage of total respondents reporting increases minus the percentage reporting declines. The data shown are seasonally adjusted.
Source: Federal Reserve Bank of Kansas City Business Surveys
Find additional Insights on Agricultural and Rural Economies.
Research and Information
Agricultural Finance
Research and articles tracking trends in agricultural finance.
Insights on Ag and Rural Economies
Concise analysis on agricultural and rural economic trends.
Agricultural Data and Indicators
Data on economic and financial conditions in agriculture.
Agriculture Research Hub
All of the Kansas City Fed's research and resources on agriculture and related topics.
System Resources
Links to research and resources on agriculture and rural topics from throughout the Federal Reserve System.
Latest Research and Updates
Agriculture
-
Growth in Farm Lending Activity Persists | -
Strong Farm Loan Demand Supports Ag Bank Earnings | -
Firm-Level Pass-Through of Supply Chain Disruptions: Insights from the U.S. Beef Market | -
Disparate Conditions in Crop and Livestock Sectors Evident in Credit Conditions | -
Omaha Branch holds Economic Forum | -
Federal Reserve Bank of Kansas City Launches Center for Agriculture and the Economy |
Agricultural Finance
-
Growth in Farm Lending Activity Persists | -
Strong Farm Loan Demand Supports Ag Bank Earnings | -
Farmland Values Remained Strong in 2025 | -
Farmland Values Remain Firm Despite Deterioration in Farm Finances | -
Larger Operating Loans Boost Farm Lending Activity in 2025 | -
Tighter Liquidity and Improved Earnings at Agricultural Banks |
The Kansas City Fed's Continuing Commitment to Agriculture
Through regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on U.S. and global agriculture. Leveraging this expertise, the Center for Agriculture and the Economy serves as a resource within the Federal Reserve System by providing timely analysis of industry developments and conducting ongoing research on the agricultural economy. The Kansas City Fed is committed to understanding developments in the agricultural economy and gathering perspectives from rural America in order to include them in discussions on the national economy.
The Kansas City Fed's Ag Connection
Agriculture is central to the Kansas City Fed’s 10th District’s economy, from farm production and food manufacturing to agricultural banking and finance. Through its regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on the U.S. and global agricultural economy. At the same time, connecting with stakeholders and ag industry professionals through events, round tables and conversations is critical to the Bank’s work.