High cost of fuel impacting farmers 

By MINDY POEHL | Central Texas Edition

The crowd attentively learns about the future of farming at the Williamson County Crops Clinic on Nov. 1. � Photo by Mindy Poehl

Nov. 11, 2005 - With the gas prices being so high, the prices and usages of fuel and fertilizer are often on the minds of farmers.  Farmers depend on petroleum products, like gasoline and diesel fuel, to power vehicles and machines that are used in everything from planting and harvesting crops to feeding animals and spreading fertilizer.

At the Williamson County Crops Clinic, held at St. Mary's KC Hall in Taylor on Nov. 1, Archie Abrameit discussed fuel and fertilizer.

"Right now it is harvesting time for crop growers," said Archie Abrameit, Extension specialist and Stiles Foundation manager. "A big problem is that fuel costs have risen dramatically and that has a direct effect on the cost of silage. Combines will be harvesting and running, and they use a large quantity of fuel."

An example that was given is the chopping of corn silage. It takes a lot of fuel and horsepower, explained Abrameit.

In fact, many farmers have invested in newer tractors that are more fuel-efficient or that run on diesel fuel. Those that have older tractors may be hurting.

�We still have a lot of smaller tractors being used around the farm, but those were built when the price of gasoline was a lot cheaper,� Abrameit said.�

The owner of a hardware store can raise his prices to cover his costs. The grocery store can raise its prices because the cost of the products and delivery goes up. But it is difficult for farmers to raise their prices. Farmers usually cannot pass on to consumers the increased cost of operation. 

"Farm commodity prices are based on straightforward supply and demand," Abrameit noted. "When energy costs escalate, farmers may be caught in the middle between rising production costs and falling revenues."

The cost of fertilizer is also rising, because fertilizer uses fuel to produce its main ingredients, such as ammonia or nitrates. 

"Potash costs went up almost 80 percent last year," Abrameit said. "And now nitrogen costs are headed in the same direction."

But, Abrameit said that the rising prices of fertilizers could cause homegrown manure to be more valuable for farmers.

�Manure will absolutely be looked at as a source to provide our fertilizer need this next year,� Abrameit said. �I�ve already had farmers ask me if I know of someone who has manure to sell.�

But, even if a farmer uses manure generated on the farm as fertilizer, there are still costs associated with spreading it over many acres. 

However, farmers are just as creative as other successful businesses, and they will evaluate their near-term responses as well as their options for the future.