The Oil Drum

Basically, if chemical costs go up, it affects both farmers and toy manufacturers, to choose just two examples.  Both sectors raise their prices.  When consumers have to choose, which product will they buy?

If US farmers cannot raise the price of their products to at least cover rising costs, and moreover they are receiving the lowest price in history, the only explanation I can find is that there is excess worldwide supply and much of the non-US part of that supply is not being affected by rising costs.  You should find out what other countries export the products in question and whether they subsidize their internal energy prices.

The good news is that, in the long run, that cannot be sustained, as all competing countries will feel the energy squeeze.  The bad news is that in the long run you will be bankrupt if you do not get a government subsidy now.

BTW, learning about peak oil made me see the wisdom behind governments subsidizing agriculture particularly in Europe.  Hadn't they done that, foreign competition would have driven farmers out of business and turned their land into golf courses.  And after peak oil, when that land  had to be put again into farming, the skills would not longer be there.  (Of course, I very much doubt that politicians did that out of that level of foresight.)