Agriculture market
Good returns for farmers,
but profits have dropped
 |
H&N photo by
Andrew Mariman
Workers at Wong Potatoes work to keep up with
incoming produce Friday. The slowing economy has had
no negative effect on the business, according to
owner Dan Chin. |
By JILL AHO
H&N Staff Writer
October 6, 2008
While markets this year have been giving farmers
good returns, rises in product costs such as fuel and fertilizer
have reduced profits.
Chris Moudry, owner of Basin Fertilizer, said depending on the
kind of fertilizer, increases have been between two and three
times last year’s price. He said he’s never seen increases this
great in 33 years in business.
“I was very surprised it went up as much as it did,” he said.
“We projected a price increase and it just blew by that.”
Multiple factors
Many factors contributed to the fertilizer
increases, Moudry said.
Drought in Australia has led to worldwide shortages of grain
stocks, leading more American farmers to plant grains. Add to
that increased demand for the commodity in emerging countries
such as India and China and the devaluation of the American
dollar, and there is a price increase on the mostly imported,
but highly used product.
Dan Keppen, executive director of Family Farm Alliance, said
programs encouraging alternative fuel production have led more
farmers to grow crops that could be used for biofuels.
“The downside is ethanol, in part, is driving up corn prices,”
he said. That means livestock owners are paying more to feed
their animals.
Keppen, who fights to keep farmers in the forefront of water
regulation policies, said he feels farmers in the Basin are
unfairly targeted when water supplies threaten the ecosystem.
“That’s my biggest concern. We’re not developing new water
supplies so, by default, the farmer’s water is being taken,” he
said.
And while it may seem as easy as changing the kind of crop a
farmer grows to conserve water, Keppen puts it this way: “You
don’t go to a guy in a restaurant and say ‘you need to stop
selling food and start selling shoes because it uses less
water.’ They know what they can grow here.”
Keppen said he sees more and more farmers taking advantage of
conservation programs, although he said some do so out of
necessity.
Farmers can get paid to plant vegetation along streams and to
keep livestock out of water.
“I think farmers are the best stewards of the land,” he said.
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