LEGITIMATE STEALING! What's Your Energy/Fertilizer Situation?
www.agweb.com 3/7/2003 by Roger Bernard
Rising gasoline prices are catching consumers' attention across the country. And with good reason as the Energy Information Administration (EIA) is noting that pump prices have hit record marks in 16 states, and a U.S.-wide record is in danger of falling. Here's a link to a story we ran on AgWeb.com yesterday on the situation.
But for agriculture, the impacts run across several areas like diesel fuel, fertilizer and nitrogen costs. We want your feedback on what you're experiencing as spring approaches. Have you had trouble locking up N supplies or diesel fuel? How much have your costs gone up, etc.?
Drop us a line using this email link. We'll compile the responses as they come in. As usual, please include your location -- we won't use your name.
Here's what one grower email us already this morning:
"The last time we had a quote on anhydrous it was $385 and going higher. The said $400-$450 would be the norm for this spring. What irritates me is that this fertilizer was produced with cheap natural gas last fall. This is the same thing that happened two years ago. You would think that there are always going to be about the same amount of acres planted year in year out. So don't the fertilizer companies buy natural gas ahead of time if they see it going up? In my opinion it is beyond gouging.We need to call it for what it really is LEGITIMATE STEALING!
"As for fuel prices when Venezuela went on strike Saudi Arabia stepped up to the plate and in no uncertain terms said they would fill ANY gaps in oil production. There is no disruption in production right now such as the war so what the heck is going? Oh, I forgot it is the same thing as my previous paragraph -- LEGITIMATE STEALING! I haven't bought any because I still think that once the war with Iraq starts and they find no real disruption then prices for gas and diesel should retreat quickly.
"There is a silver lining in all this: If prices for gas and diesel double or triple or even more. Then that will create a call for more self reliance on renewable fuels such as ethanol and biodiesel. Maybe that is exactly the catalyst we need. The American public has always wondered why we buy oil from the very countries that want our demise. It doesn't make sense to fund terror thru the back door. I wonder what the true price of fuel is when you add in the cost of military protection of the oil tankers that come out of the Persian Gulf."