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Economy
Farms face long-term challenges as production costs continue to skyrocket, fifth-generation farmer says
2022-04-25
[FoxNews] Rising input costs puts U.S. farmers at risk of long-term issues

Rising costs of fertilizer, fuel and equipment could cause long-lasting problems for the agricultural industry, a fifth-generation farming facing the skyrocketing prices told Fox News.

"It’s going to be a very expensive year for farmers," Chris Pollack, co-owner of Pollack Vu-Dairy, said "We are going to the field with very expensive tools in our toolbox."

"Fertilizer right now is double what it was a year ago. Fuel is over double what it was," Pollack continued. "Some chemicals are dramatically increased as much as three to four times."

The cost of fertilizer alone has risen more than 300% in some areas, according to the American Farm Bureau.

Pollack's dairy farm typically spends around $70,000 on fertilizer per year, the farmer told Fox News. But he said that will likely more than double to around $145,000 this year.

"If we do not have an adequate supply distribution network and affordable fertilizer, it really does create some concern around long term yields," said Corey Rosenbusch, who heads the advocacy group The Fertilizer Institute.

The rise in price is due to a number of factors, including increased demand, supply chain disruptions, increase in energy costs, according to the American Farm Bureau. Even the war in Ukraine plays a role.

"Natural gas makes up anywhere from 70 to 90% of the production cost of nitrogen," a necessary component for most fertilizers that farmers use, Rosenbusch said.

Russia, which faces strict sanctions for its invasion in Ukraine, was the largest natural gas exporter in 2021, according to the Energy Information Administration. It and Belarus together export about 20% of the world's fertilizer.

Pollack pointed to one tractor and said it would "go through 800 to a thousand gallons of diesel in this year alone."

"We’re going to use it either way, but it just makes it that much more expensive to operate," the farmer, whose family has managed Pollack Vu-Dairy since 1901, added.

Diesel costs have risen to an average of $5.065 a gallon as of Thursday night, up nearly $2 from a year ago, according to AAA.
Posted by:Skidmark

#2   Many small farmers have had husband and wife working full time jobs just to keep the farm going.

Not a new thing, Dale. Way back in the 1980s when I was involved in new-ing and improving toothpaste, half the staff of the company’s Iowa City factory gave up the idea of sleep during planting and harvesting seasons.
Posted by: trailing wife   2022-04-25 23:24  

#1  Many farmers I've talked to are stopping. Too many negatives to overcome. So you start your day and think how much will I lose today. Many small farmers have had husband and wife working full time jobs just to keep the farm going.
Posted by: Dale   2022-04-25 14:41  

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