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Farmers may get relief on expense
Price of fertilizer down, a cause for optimism for growing season

By JENNA MINK, The Daily News, jmink@bgdailynews.com/783-3246
Monday, January 12, 2009 11:46 AM CST

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Last year was grim for area farmers, who battled dry weather and economic problems, but this year began with a sign of optimism.

After increasing for six consecutive years, fertilizer prices are dropping, according to the American Farm Bureau.

“It would be one bright spot they can look at right now,” said Steve Osborne, Allen County extension agent for Agriculture and Natural Resources.

Most wholesale fertilizer prices have fallen at least 50 percent. Anhydrous ammonia, which is used for grain production, dropped from $1,000 to $500 a ton, according to the farm bureau.

The drop is tied to lower oil prices and a lack of use due to the recession, Osborne said.

Still, lower fertilizer and fuel prices will not solve problems that farmers face, he said.

“I would say that would be a temporary fix,” he said. “In time, as the economy grows again, and people will be (farming) more, prices will go up.”

Some farmers will not experience the low prices because their suppliers purchased fertilizer when costs skyrocketed. And other farmers must wait until the low wholesale price reaches retailers.

Ronnie Hargett, a Rich Pond farm owner, said he expects to see lower fertilizer prices on the shelves by March or April.

“Until I see (prices drop), that’s when I’ll believe it,” he said. “Prices are still astronomically high. Even with gas down at $2, it’s still high.”

Hargett said lower gas and fertilizer prices are a good sign, but many farmers are reeling from last season when those prices soared.

“(Prices) came down a whole lot, but we will not recoup what we invested in,” he said. “When we were consuming the most fuel was when it was at its highest cost.”

This year, many farmers are testing their soil to determine areas that do not need extra fertilizer to save the cost, said Joe Duncan, a farm owner and retired agriculture professor at Bowling Green Technical College.

“They’ll take more soil tests, and they’ll be looking harder to see if they can get by with no fertilizer,” he said.

And many will wait for the low prices to hit the retail side.

“It’s a waiting game to see who gives in first,” he said. “Some say they won’t use as much or use any until retailers are down ... the less they bought back in the summer and early fall, the better off they are.”

Even though the outlook for this season is sunnier than it was two months ago, low prices are worthless without good weather, Duncan said.

“I don’t care how much fertilizer, chemicals, all these things (cost),” he said. “If we don’t get good rain at the right time and in the right place, it doesn’t matter.”

Hargett said he is approaching the new season with caution.

“Everybody is with the economy the way it is,” he said. “I want to be optimistic ... I don’t see any quick fix at this point.”


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