Fuel fears: Ag producers prepare for another season of high fuel costs

By DAVY MOSELEY | Country World East Texas

May 31, 2001 -- They say if you don't know your history, you are doomed to repeat it.

Texas' ag producers remember well the prices they had to pay for diesel fuel, and other oil-based agriculture products, last year; but it looks as if history is going to repeat itself anyway.

Dr. Gregg Clary, Extension economist at Overton, commented that higher prices are being seen for diesel, gasoline, natural gas, as well as fertilizers and pesticides, throughout Texas. All of which are currently higher than most years, and will directly impact agricultural producers -- some worse than others.

"(Agriculture) producers are residual price takers," Clary said. Unlike processors and distributors, who can pass increased input costs on to the end consumer, producers are forced to absorb the higher fuel costs.

Clary speculated the higher prices are more of a reflection of availability of refined fuels, than a shortage of crude oil. A simple case of demand outweighing supply.

Randy Hall, of Hall Oil Company in Sulphur Springs, said he was unsure where gas and diesel prices were headed.

"There's really no way to speculate on what gas and diesel prices are going to do," Hall said. "I wish I could tell you."

Hall reiterated that farm diesel is not shackled with the 44.4 cent state tax as road grade fuels are, but that many farmers depend on highway vehicles, such as pickups and trucks, in their daily routines. By law, highway vehicles must use taxed, road grade fuels.

The Extension economist said crop farmers will feel the effects of high diesel costs this summer, as will hay and forage producers.

With hay production in full swing throughout Texas right now, producers should know there are some some things they can do to improve performance and fuel conservation, according to David Talley, service manager at Farm Country Inc. in Sulphur Springs.

Talley said not overworking tractors is one key way to cut down on fuel consumption.

"You see lots of these boys pulling a twin rake, and baler (combination) behind one tractor. It may speed things up, but it puts a lot of stress on that tractor," said Talley. This translates into increased fuel consumption.

Talley stressed that proper tractor and implement maintenance can also go a long way in cutting down on fuel costs.

"Keep your tractor serviced, and your engine maintained," Talley said. "Change air and fuel filters regularly, check for stopped up injectors, adjust valves, have your radiator checked, and don't forget to check transmission and hydraulic fluid levels and filters."

Keeping well-maintained equipment will not only cut back on fuel consumption, it will reduce time spent in the shop for repairs as well.

"I'll bet 99 percent of the work we get is a result of lack of maintenance," said Talley. "I'm looking at 30 tickets on the wall that we haven't been able to get to. If folks would spend a little more time maintaining their tractors and equipment, they'd spend a lot less time getting them worked on."

Clary said that poultry farmers, who use natural gas cooling systems to cool their poultry houses, will be hit especially hard this summer if the prices for natural gas remains high.

The poultry house operator can not cut back on cooling to save money or the chickens will die, but as with other types of machinery, these cooling systems should be properly maintained and checked regularly to ensure they are operating efficiently.

It may be another hot, dry summer after all, and in this case, it won't pay off for ag producers to know their history, but shop class notes could come in pretty handy.