At a time of declining farm income, fuel and electricity costs are climbing once again. Unleaded gasoline averaged $3.54 a gallon nationally last week, that is up 14 percent from the start of the year. The national diesel price averaged $4.
As planting season approaches, fuel and electricity prices are taking a toll on producers’ pocketbooks. American Farm Bureau Economist Betty Resnick says increasing fuel and power costs are a reality for producers nearing planting season.
It’s not just fuel prices that are on the rise as the cost of electricity is also increasing, says Resnick.
Wars overseas, OPEC production cuts, and U.S. refinery disruptions are blamed for higher gas and oil prices. Oil reached a six-month high last week on continuing fears of increasing Middle East turmoil. All of this comes as AFB’s Resnick cites declining farm income.
USDA forecasts about a 25 percent drop in net farm income this year. Resnick says one positive is the declining natural gas prices which are keeping ammonia and, therefore fertilizer prices, in check. Another plus is USDA REAP grants and loans to buy renewable or energy-saving systems.
