Farmers cope with higher costs
Long term impact uncertain
By ROWENA PLETT
Staff writer
Farmers use a lot of fuel and chemical products in their business, so they are hard hit when petroleum prices soar.
According to Mike Thomas, manager of Cooperative Grain and Supply elevator in Marion, fertilizer of all kinds is up $100 a ton from a year ago and "going up every day."
Thomas said new prices on herbicides and other chemicals have not yet been received but are bound to be higher.
According to Delbert Peters, office manager of Cooperative Grain and Supply, Hillsboro, the price of fuel is higher, although it has dropped considerably after reaching a peak on Sept. 2.
Gasoline is up about 45 cents a gallon from a year ago, and farm-use diesel is up about 60 cents.
At the same time, grain prices are lower. Corn is about 50 cents lower than last year at this time, milo is 20 cents lower, and soybeans also are lower.
The effect of lower grain prices is cushioned somewhat for those who are enrolled in the federal farm program. Prices the farmer receives are subsidized up to a fixed level.
Greg Bowers, loan officer at Central National Bank in Marion, said farmers he deals with are hurting some but are more concerned about the future.
"Costs are up some but they're looking at a fair fall crop, so it's not that big of a deal," he said.
The focus is on next spring and the possible cost of fuel and fertilizer, herbicides, and transporting grain.
"Farmers are not feeling quite as flush as they were last spring," Bowers said. "They're a little more nervous. Next year might be devastating."
