Tough Summer Ahead For Farmers; Rising Fuel Prices Could Mean Lower Profits
Rubatex Msds Sussex County farmers preparing to plant say the rising cost of fuel will cut into their profits. Petroleum products figure into almost all aspects of modern farming, from the cost of diesel fuel in tractors, combines and irrigation pumps to the price of chemicals and fertilizers used in the fields.
Summer riding means preparation and planning ahead. Here are some good tips to begin the season with.
Rubatex Neoprene The nationwide gas price average of the past two weeks was at a record high $1.80 for all grades, according to the Lundberg survey, which tracks 8,000 stations nationwide.
Head and Shoulders A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
Rubatex Pipe High global demand is keeping fuel prices up, said Jim Benton, executive director for the state Petroleum Council. Demand in New Jersey is up over 4.5 percent over the last four weeks and (the United States) is making 3 percent more gasoline than last year.
uSwitch has pointed out that the Big Six have failed to lower consumer bills despite a sustained fall in wholesale gas prices since July 2006. Ann Robinson, director of consumer policy at the company, commented on the glut of gas supplies in the UK. "Wholesale gas prices plummeted below zero pence yesterday, making any further price rise announcements in the New Year simply inexcusable. Extra supplies from Norway, the warm weather and lower than expected demand mean that we are in an unprecedented situation where gas traders are having to pay for wholesale gas supplies to be taken off their hands.
Rubatex Pipe Insulation The rising costs are creating significant increases in agricultural operating costs, particularly regarding the production of crops.
The turnaround comes after a sharp fall in the wholesale gas price since last summer. Despite a rally in recent weeks after the closure of a North Sea pipeline, forward gas prices for this winter are just 44p per therm nearly half the level of a year ago. fuel rate has come down by 00. However, City analysts believe that the lower wholesale price means that it has managed still to restore margins to between 6 and 8 per cent.
Rubatex 180 Richard Nieuwenhuis, an agent with the N.J. Farm Bureau, said the high cost is affecting the cost of operations as well as the cost of fertilizer which is derived from petroleum-based products.
Furthermore, the original argument given for raising tariffs to these levels is itself now redundant. Wholesale prices have seen a sustained retreat since the summer but this has failed to halt the drive towards even greater profitability. tax profits for the first half of the year to a staggering 84.5 million. Energy supply director, Davies is recently quoted as saying 'If, as everyone hopes, falls in wholesale energy prices continue and are sustained, we will move as quickly as we can to reverse the price rises of recent years.'
Rubatex 180 Fs Nieuwenhuis said he doesnt think the high costs will change how much farmers will produce, but realizes it will affect their gross income.
Rubatex 1800 There is not a whole lot you can really change when it comes to farming in New Jersey, Nieuwenhuis said.
Rubatex 320 I cant remember when the last time was we saw these prices, he said. The cost is definitely higher than last year.
Rubatex 373 Fuel is one of the major input costs in production, according to Niewenhuis. Diesel and gas are used for most farming equipment and trucks to transport the product to market.
Rubatex Rubber Some of our commodity farmers corn and soy farmers have switched to no-till operations where they have to go through the field less to plant and harvest a crop. The less times they have to go though the field, the less the cost of fuel for machinery, Nieuwenhuis said.
Rubatex Tape No-till techniques consist of using chemicals to kill winter growth and planting in old seed beds instead of spending money to turn fields under and create new rows each year.
Rubatex Closing Roger DeGroat, of Plumbsock Farm on Route 519 in Wantage, said it costs him $2.04 a gallon to have his gas delivered.
Rubatex Closed Cell Gasketing The price of milk is supposed to go up and feed and gas already has. Its going to be another one of those summers, he said.
Felpro Gaskets DeGroat purchases 275 gallons of gas nearly every month. As of yet, he hasnt filled his diesel tank as he is waiting to see if the cost goes down first.
Poly Products Supplies This is the first time I ever paid this much, he said.
Poly Hunting Feeders DeGroat, who has 200 acres of farm land, said he uses a lot of the gas and diesel for his tractors to plant 50 acres of corn and till the lands hay.
Shoreline 13171 17 Neoprene Robert Ritzer, of Ritzer Farm on Barret Road in Vernon, said he buys five gallons of gas at $1.70 once or twice a week.
Neoprene Pads The (high cost) will definitely effect how much gross income I make, he said. We wont expect to make as much this year.
Neoprene Seat Covers Ritzer, in partnership with his brother, collects maple syrup and creates lumber from his 80-acre field and wooded farmland. He also has a large garden and a roadside vegetable stand.
Rubber Manufacturer Debbie Crisman, owner of a 230-acre dairy and produce farm off Route 94 in Fredon, expressed concern over the fact that she, unlike other business people cannot pass on the high cost of fuel. Farmers dont get to pass on the surplus, so unfortunately, we have to eat it, she said. There is nothing we can do about it.
Industrial Insulated Foam Crisman said increased fuel costs will have to be added into the farms existing expenses. We can try cutting back on fertilizer, but that is needed for crops for production, she added.
Wholesale Rubber Crisman said she and her family conduct a lot of crop and hay farming. Between raking and cutting and bailing, its expensive to do. Usually, the prices come down, but it doesnt look like that will happen this year.
By Mary Paolucci
NJ Herald - 4/6/2004
Topic: Petroleum Industry
Share this:
More about:
- Only Finance Compare Loans Mortgages and Insurance
- Diesel Prices Are Bringing Some Trucks To A Standstill
- Ryanair cautious despite record profits
- Gasoline Prices Jump In Midwest, Hinting Of Wider Spikes
|
||||||||||||||||||||||||||||||||||||||||||||||||||





