Like on many farms, fuel for our vehicles, tractors, and other equipment is now a significant expense. Until recently, we relied on a 140-gallon diesel tank. To meet the fuel needs for our growing operation, we’re installing a 600-gallon tank. The last fill-up for the smaller tank cost $459, but yesterday it jumped to $629, a 37% increase. Soaring oil prices are driving up not only fuel costs but also the price of petroleum-based fertilizers. Urea (nitrogen) fertilizer, for example, is up $200 per ton. With razor-thin profit margins, many farmers are forced to take on more operational debt or shut down. Just this week, I eavesdropped on a conversation between older farmers about these difficulties. One said, “I guess we will keep farming until the banker says no.” It’s a bleak commentary on the precarious state of American agriculture. Shown below is the 2024 USDA breakdown of $1 in food sales by industry group. • Agribusiness, Crops, and Livestock $0.08 • Food Processing $0.16 • Transportation and Storage $0.04 • Food Wholesale $0.063 • Food Retail $0.14 • Food Services $0.39 • Energy $0.03 • Finance and Insurance $0.05 • Other $0.05 At the same time, farmers bear most of the risk due to production uncertainties, market prices, financial costs, uncertainties in government programs, and personal crises. As consumers, we have the power to change the current state of agriculture by buying directly from farmers and retail suppliers who pay them a fair price for their products. -Leo
STAPLES FARM
- EST 1971 -Latest from Staples Farm
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