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| Directions l American Farm Bureau l Farm Bureau Bank l Privacy Policy l Contact Us l Help l Site Map |
The Voice of Louisiana Agriculture
Welcome to the Louisiana Farm Bureau Federation
| Directions l American Farm Bureau l Farm Bureau Bank l Privacy Policy l Contact Us l Help l Site Map |
Welcome to the Louisiana Farm Bureau Federation
Welcome to the Louisiana Farm Bureau Federation
The Voice of Louisiana Agriculture
NEW ORLEANS – Farmers attending the 86th annual Louisiana Farm Bureau convention
here say rising fuel prices and higher energy costs will temper increases in farm commodity
prices.
On average, prices for diesel fuel have increased nearly 70
percent from a year ago, according to the Energy
Information Administration, the energy statistical reporting
arm of the federal government. The EIA reports the
average price for a gallon of diesel fuel at the retail level
was $2.88 a gallon last year. Today, the average price is $4.32.
"We don't make one pass over our fields with a piece of
equipment unless it’s absolutely necessary," said Elliot Colvin,
a grain producer from Rayville. "And it’s not just the cost of
fuel. Our fertilizer costs have gone up more than diesel."
Colvin, who farms 2.300 acres of corn, soybeans, rice and
wheat, said last year a bulk container load of diesel fuel,
about 7,200 gallons, cost him $12,000. Today that same
tanker load is running $30,000.
"I go through about 25,000 gallons of diesel from planting to
harvest and need about three loads during the year," Colvin said.
"We haven't had any trouble getting fuel from our suppliers,
so at least we don't have to worry about availability."
Gene Adolph, a sugar grower from Napoleanville, said conditions are the same on his farm.
With about 650 acres of sugarcane in production he said this year's harvest would be his
most expensive.
"We've looked at every way possible to reduce our fuel use, but at some point you've got to
put equipment in the field," Adolph said. "We have to truck our cane further to the mill this
year, so we're going to be watching every drop of fuel we have to use."
Fertilizer costs also have skyrocketed, said Kyle McCann, a farm economist with the
Louisiana Farm Bureau Federation. He said on crops such as corn, fertilizer can account
for as much as 30 percent of the per acre input cost.
"We've seen energy and fertilizer prices outpace the rising commodity prices," McCann
said. "Last year world fertilizer prices jumped 200 percent. By the end of the year the price
could be triple what it was just 18 months ago."
Colvin says his fertilizer costs, primarily urea, a primary source of nitrogen, have already
doubled from last year and “the word is it will be around $1,000 a ton by the end of the
year."
"In the spring fertilizer was costing me $450 a ton," Colvin continued. "Right now it's $860 a
ton. By the time we begin to plant our wheat in November they're telling us it could be as
much as $1,000 a ton."
Colvin said fertilizer is costing him $275 an acre. Last year his fertilizer inputs averaged
$100 an acre. "It's a good thing crop prices are where they are now, otherwise we’d have
to seriously reconsider our crop mix."
Corn is a crop that requires high levels of nitrogen fertilizer. Current prices for August
delivery of corn are hovering near $7.50 a bushel.
"Even at that price we won't make very much off the corn," Colvin said.
More than 1,000 farmers and their families are attending the 86th annual Farm Bureau
convention. The organization is the largest farm group representing Louisiana's farmers,
ranchers and rural residents.
here say rising fuel prices and higher energy costs will temper increases in farm commodity
prices.
On average, prices for diesel fuel have increased nearly 70
percent from a year ago, according to the Energy
Information Administration, the energy statistical reporting
arm of the federal government. The EIA reports the
average price for a gallon of diesel fuel at the retail level
was $2.88 a gallon last year. Today, the average price is $4.32.
"We don't make one pass over our fields with a piece of
equipment unless it’s absolutely necessary," said Elliot Colvin,
a grain producer from Rayville. "And it’s not just the cost of
fuel. Our fertilizer costs have gone up more than diesel."
Colvin, who farms 2.300 acres of corn, soybeans, rice and
wheat, said last year a bulk container load of diesel fuel,
about 7,200 gallons, cost him $12,000. Today that same
tanker load is running $30,000.
"I go through about 25,000 gallons of diesel from planting to
harvest and need about three loads during the year," Colvin said.
"We haven't had any trouble getting fuel from our suppliers,
so at least we don't have to worry about availability."
Gene Adolph, a sugar grower from Napoleanville, said conditions are the same on his farm.
With about 650 acres of sugarcane in production he said this year's harvest would be his
most expensive.
"We've looked at every way possible to reduce our fuel use, but at some point you've got to
put equipment in the field," Adolph said. "We have to truck our cane further to the mill this
year, so we're going to be watching every drop of fuel we have to use."
Fertilizer costs also have skyrocketed, said Kyle McCann, a farm economist with the
Louisiana Farm Bureau Federation. He said on crops such as corn, fertilizer can account
for as much as 30 percent of the per acre input cost.
"We've seen energy and fertilizer prices outpace the rising commodity prices," McCann
said. "Last year world fertilizer prices jumped 200 percent. By the end of the year the price
could be triple what it was just 18 months ago."
Colvin says his fertilizer costs, primarily urea, a primary source of nitrogen, have already
doubled from last year and “the word is it will be around $1,000 a ton by the end of the
year."
"In the spring fertilizer was costing me $450 a ton," Colvin continued. "Right now it's $860 a
ton. By the time we begin to plant our wheat in November they're telling us it could be as
much as $1,000 a ton."
Colvin said fertilizer is costing him $275 an acre. Last year his fertilizer inputs averaged
$100 an acre. "It's a good thing crop prices are where they are now, otherwise we’d have
to seriously reconsider our crop mix."
Corn is a crop that requires high levels of nitrogen fertilizer. Current prices for August
delivery of corn are hovering near $7.50 a bushel.
"Even at that price we won't make very much off the corn," Colvin said.
More than 1,000 farmers and their families are attending the 86th annual Farm Bureau
convention. The organization is the largest farm group representing Louisiana's farmers,
ranchers and rural residents.
Farmers Say High Energy Costs
Moderating High Grain Prices
Moderating High Grain Prices
By MICHAEL DANNA
FB News Staff Writer
FB News Staff Writer
| FB NEWS Photo by Avery Davidson |
As harvest season across Louisiana begins, producers are concerned that
the high price of diesel fuel will surpass current commodity price levels.
Diesel prices have nearly doubled in the last 12 months.
the high price of diesel fuel will surpass current commodity price levels.
Diesel prices have nearly doubled in the last 12 months.
