| Soaring
price of oil is breaking Cache Valley farmers, agent says
By Stephanie Hebert
December 5, 2007 | NEWTON -- The national average price
for regular unleaded gasoline at the pump is $3.06,
up from $2.28 last year at this time, according to the
American Automobile Association. The rise in fuel prices
has had a dramatic effect on agriculture, LaMar Clements,
president of Walton Feed Inc., said.
"It's breaking us," Clark Isrealson, USU Agriculture
Extension Agent said. Farmers are price takers not price
setters so they have to be more efficient and go without
at times.
Isrealson said that five years ago there were 160
dairies in Cache Valley. Today there are only 95, which
means that Cache Valley is losing approximately one
dairy a month.
"The people who are raising corn, barley, wheat and
alfalfa are getting a strong price," Clements said.
"I'm not going to say high because high is a relative
term."
In one month from July to August this year, alfalfa
prices went up $7 a ton and it is up $25 a ton from
last year at this time, according to the USDA National
Agriculture Statistics Service.
"Right now the price of milk is good so it balances,"
said Dave Griffin. Dave and his brother Steve own and
operate D & S Dairy in Newton. They have approximately
350 cows and farm 1,500 acres planted with corn, alfalfa
and grain.
"This year has been a good year because the milk (price)
is up and what I mean is we've been able to make all
our payments," said Griffin.
The USDA National Agricultural Statistics Services
reported that average milk price in Utah in August was
$21.70 per 100 pounds of milk, which was up 80.8 percent
from August 2006
Isrealson said that five years ago it cost approximately
$12.50 to produce 100 pounds of milk. Today it costs
approximately $18 to produce 100 pounds of milk.
The rise in the cost of fuel and feed has even driven
up the price of fertilizer. Right now there are no ingredients
at the feed mill that are cheap, said Clements, but
the fact that farmers are making more money is an illusion
because the price of everything has gone up.
Clements said that he is not sure that farmers are
better off this year compared to last because even though
milk prices have gone up so has the cost of feed, fuel
and fertilizer.
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