AFBF on Fuel and Energy Costs
From the Ag Information Network, I’m Bob Larson. Fuel and electricity prices are on the rise again amid declining farm income. Unleaded gasoline averaged $3.54 a gallon nationally, $4.47 here in Washington, last week, up 14 percent from the start of the year. Diesel averaged $4.00 nationally and $4.68 in Washington.
American Farm Bureau Economist Betty Resnick says that’s taking a toll on producers around the country …
RESNICK … “It does take a lot of fuel to do what we need to do. You also have things like the cost of electricity. That also impacts farmers a lot for their grain dryers, or if you’re a high-energy cost production, like poultry production.”
As electricity costs were also rising.
Wars overseas, OPEC production cuts, and U.S. refinery disruptions are blamed for higher gas and oil prices, with oil at a six-month high last week on fears of an Israel/Iran conflict. All this as AFB’s Resnick cites declining farm income …
RESNICK … “We are projected to have lower incomes, both year-over-year from last year, and it was also a decrease from the year before, so two years of declines in income.”
USDA forecasts about a 25 percent drop in net farm income this year. Resnick says a positive note is declining natural gas prices, keeping ammonia and, thus, fertilizer prices, in check. Another is USDA REAP grants and loans to buy renewable or energy-saving systems.
