Fuel and Fertilizer Costs in California and Global Food Prices Rise

Fuel and Fertilizer Costs in California and Global Food Prices Rise

Bob Larson
Bob Larson
From the Ag Information Network, I'm Bob Larson with your Agribusiness Update.

**Rising fuel and fertilizer costs are impacting California farmers and could create uncertainty in the food market.

Just a year ago, a gallon of diesel fuel for tractors averaged $3.25, and now, is about $4.50.

The cost of fuel has tripled since 2020 for aircraft used for crop applications.

Farmers say the trend could affect supermarket produce selections if they need to alter planting decisions due to costs.

**The USDA announced final pandemic assistance payments for the timber industry starting this week.

USDA will provide $200 million through the Pandemic Assistance for Timber Harvesters and Haulers to loggers and log trucking businesses.

The funds are for businesses that experienced a gross revenue loss of at least 10% in 2020, compared to the year before.

Eligible applicants must have derived at least 50% of gross revenue from timber harvesting or hauling.

**Global food prices rose for a fourth consecutive month in November, driven by strong demand for wheat and dairy products.

According to the UN Food and Agriculture Organization, FAO’s Food Price Index averaged 134.4 points during November, its highest level since June 2011 and 1.2% higher than it was in October.

www.agrimarketing.com reports, the index tracks monthly changes in the international prices of commonly-traded food commodities.

November's index was 27.3% higher than a year earlier.


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