03/28/08 Fuel, fertilizer costs keep rising

The people who watch the numbers keep telling us the price of fuel is going higher. You don't have to tell that to a farmer. YOUNG "Farmers are going to be at the top of the list of not at the top of the list in terms of their energy needs particularly at this time of the year. This is when we're getting our work done." American Farm Bureau economist Bob Young. Young says higher commodity prices are offset by the huge fuel and fertilizer price increases of the last five years. YOUNG "Fertilizer costs for example are up about 90 percent. Petroleum costs are up over 100 percent, 105 percent. Diesel costs are up 120 percent over the last five years and for that matter are up 16 to 17 percent just this year relative to last year." When it comes to nitrogen based fertilizer, the high cost of natural gas has to be figured in. YOUNG "So it probably makes up from 65 to 75 percent or so of the cost of manufacturing nitrogen fertilizes. Also think about some of the other fertilizers that are really very bulky products so it just takes a lot of transportation costs as well to move them from where they are to where you need to use them." He says a farmer who had a ten thousand dollar fuel bill in the late 90's or early part of this decade will pay 25 to 26 thousand for the same amount of fuel this year. Voice of Idaho Agriculture Bill Scott