Experts with the Department of Agriculture expect grocery store prices to continue to rise and outpace overall inflation again next year. In November the Bureau of Labor Statistics reports that food prices increased by 10.6% while overall inflation hit 7.2%. Overall inflation, supply chain issues and costs associated with the nationwide drought conditions caused costs to producers to increase.

Fertilizer and fuel expenses led the way, according to the Bureau of Labor, however, the farming sector’s biggest increase has been interest expense on loans. The Federal Reserve’s aggressive hikes to curb inflation have hit farmers and ranchers especially hard. According to the Department of Agriculture, many farmers each year take out short-term, variable–rate loans to pay for everything from seed to machinery. Farmers have to decide if they will reduce planting, put off purchasing cattle or eliminate other expenses as they struggle to repay loans that have seen interest rate expenses almost quadruple in the past few years the USDA reports. To stay in business farmers and ranchers must get more for their products and ultimately prices to the consumer will rise as well.

The farming sector’s total interest expense is forecast to hit nearly $26.5 billion. That is 32% higher than last year the USDA reports.