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  • From: "Tradingpost" <tradingpost@gilanet.com>
  • To: livingontheland@lists.ibiblio.org
  • Subject: [Livingontheland] Rising fuel costs put strapped farmers over a barrel
  • Date: Tue, 05 Apr 2005 07:47:02 -0600


(What did I say? Rising fossil fuel costs will make local growing and
marketing more competitive)

paul tradingpost@gilanet.com
http://largocreekfarms.com
http://medicinehill.net
----------------------------------

http://www.usatoday.com/money/industries/energy/2005-04-03-farm-gas-usat_x.h

tm?csp=22_elp

Rising fuel costs put strapped farmers over a barrel
By Barbara Hagenbaugh, USA TODAY
Posted 4/3/2005 11:51 PM


Jack Vessey farms 7,000 acres in California's Imperial Valley. His main
worry isn't the weather or global competition. These days, his top concern
is rising energy costs.

"It gets very scary," says Vessey, a fourth-generation farmer.

The U.S. Department of Agriculture estimates farmers this year will pay
$8.2 billion for petroleum, up 21% from two years ago. Adding in the cost
of fertilizers and pesticides, which are derived from petroleum and natural
gas products, and electricity, farmers are expected to pay more for
energy-related items for the third consecutive year.

"It's going to really wreak havoc within agriculture," says Troy
Bredenkamp, director of congressional relations at the American Farm Bureau
Federation. He notes that unlike in the past few years when agriculture
prices were rising, prices farmers receive for their goods are expected to
fall this year, giving them little opportunity to recover the added costs.

The USDA forecasts crop-production income will drop more than 15% in 2005
after rising more than 10% last year. Livestock income is also expected to
fall this year after jumping in 2004.

"We see really no silver bullet," Bredenkamp says. "It's going to be a
tough growing season."

Greg Davis, general manager at Nurserymen's Exchange, which grows indoor
and outdoor plants in Delray Beach, Fla., knows that firsthand. His firm
turned off the propane heaters in their greenhouses over the winter, and a
large number of plants died in what turned out to be a colder-than-normal
season.

"We basically threw the gas heaters in the Dumpsters because we can't
afford to run them," he says, noting he is now scrambling to meet orders.
Energy prices "are just eating us alive."

Vessey, who has already picked and shipped much of his lettuce, spinach,
broccoli, cauliflower and cabbage this year, says not only is it costing
him more to fill up his trucks and tractors, but his watering costs have
risen because his irrigation system runs on diesel. Even the cellophane he
uses to wrap his cauliflower and lettuce costs more these days because it
is a petroleum-based product.

He is also paying more to ship his products and says at times trucking
costs are higher than prices he is offered for his produce. But he and
other farmers say they cannot raise prices, meaning consumers are unlikely
to see higher grocery and restaurant tabs.

Says Keith Nilmeier, who farms 500 acres of oranges, grapes, peaches,
apricots and nectarines in Fresno: "Everybody (else) can usually pass on
what we call a fuel surcharge. ... In farming, everything you do is on
supply and demand."






  • [Livingontheland] Rising fuel costs put strapped farmers over a barrel, Tradingpost, 04/05/2005

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