There is no doubt that increases in fuel prices have affected
local farmers. However, the full extent of the impact remains to be
seen.
There is no doubt that increases in fuel prices have affected local farmers. However, the full extent of the impact remains to be seen.
The fuel price is one of many factors contributing to higher and higher production costs. Unfortunately for farmers, profits are not always high enough to compensate for the changes.
While costs have increased to run tractors and other equipment, farmers also must pay more to ship their produce out of the area. Joe Aiello, who has owned Uesugi Farms for 25 years, said his freight rates to ship out his product has gone up 20 percent in the past year. Aiello said that since farmers fall at the bottom of the food chain, they have few options for dealing with the fuel increases.
“We try to conserve fuel, but we have to just ride it out and hope it gets better,” he said.
G & K Farms owner Kip Brundage can only describe the situation as a total disaster.
The increase in petroleum prices has affected costs for fuel as well as fertilizer. In the past year, his expenses to run tractors, harvesters, booster pumps for water and other equipment have gone from $2,100 to $6,300 each month.
“Things like that make a farmer ask, ‘Why am I doing this,’ ” Brundage said.
His company has tried to deal with the situation by cutting back health insurance for employees and freezing all hiring and salaries. Now they have no choice but to pass on the increases to consumers.
“The fuel prices are just another thing that is continually eating up our capital,” Brundage said.
