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O/T Fuel and you!!

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dab

05-03-2006 02:50:44

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I know there has been a lot of talk about fuel prices and even those in support of it, saying that we should be at $6.00 a gallon. I am going to hold my thoughts on that my question is more direct. How much more are you going to spend this year. I caught a couple of minutes of an interview last night with a farmer that farms aprx. 4000 acres and he figures it is going to be an extra $54000.00 this year for him. I am not on the farming end of it but I know I haven't seen a dime raise in 4 1/2 years and I am pretty sure you farmers aren't getting that much more then you were 3 years ago for your product. How much is this going to hurt you pocket book.

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barnrat

05-03-2006 12:15:12

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Re: O/T Fuel and you!! in reply to dab, 05-03-2006 02:50:44

Round here fuel & fertilizer prices are hurting the big guy more. Bigger dairys(400-1300 milking cows) are droppping like flies. they are figuring spending almost $1.00 per cwt of milk for fuel. I'm smaller(bout 50 cows) my fuel costs are gonna be less then $.50 per cwt of milk this year. Thanks to low input/rotational grazing, my cows do most of the harvesting. Really saves me bucks.

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CLW

05-03-2006 09:19:23

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Re: O/T Fuel and you!! in reply to dab, 05-03-2006 02:50:44

Saw on the news a few days ago that it is costing the airlines $106,000 each time they fill up ONE of there 747s. That was over $250 per passenger to pay for fuel alone.

CLW

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jimlll

05-03-2006 05:59:03

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Re: O/T Fuel and you!! in reply to dab, 05-03-2006 02:50:44

I am surprised that food is still in great supply in our supermarkets. Many necessities have been manipulated to advance profit. I wonder when the food supply will be manipulated. We have no other supply for food.

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Errin OH

05-03-2006 08:46:54

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Re: O/T Fuel and you!! in reply to jimlll, 05-03-2006 05:59:03

I think if you ask a farmer he would tell you it already is. The profit is just not for him.

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RustyFarmall

05-03-2006 05:34:21

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Re: O/T Fuel and you!! in reply to dab, 05-03-2006 02:50:44

The farmers will be hurting for sure, but the farm machinery dealers are also hurting due to decreased sales of new equipment due to the increased expenses for the farmer. The decreased sales trickles down to me. I usually make several trips in the early spring to pickup new machinery for a local dealer, this spring I have made only one trip.

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IaGary

05-03-2006 04:57:30

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Re: O/T Fuel and you!! in reply to dab, 05-03-2006 02:50:44

Fuel is normally about 5% of my expenses when it was $1.70 per gal.

This year it will be about 8% of my cost at pre paid price of $2.12 per gal.

Without an increase in prices I receive,you can see I will make about 3% less.

But with fuel surcharges on trucking in and out of my farm it may be worst than that.

The place the fuel makes a bigger differance is in fertilizer cost. It takes petro to make fertilizer. Fert. is higher but how much is fuel related I don't know but guessing at least 15% less income for me because price increase in fert.

So high fuel cost will take an extra 18 to 20% of my margins away.

Gary

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MN Bob

05-03-2006 09:25:07

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Re: O/T Fuel and you!! in reply to IaGary, 05-03-2006 04:57:30

You made a good pre pay there. I just paid 2.60 a gallon. I didnt need and could not afford to "store" 500 gal or more so the price is really up there. Doubt if the guys that are buying tanker loads are doing much better than you.

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mjbrown

05-03-2006 06:19:48

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Re: O/T Fuel and you!! in reply to IaGary, 05-03-2006 04:57:30

The local fuel dealer here used to have a pre pay program but stopped last year. Now when you go in and pay in advance for fuel you have to take delivery in less than a week!.

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IaGary

05-03-2006 06:26:05

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Re: O/T Fuel and you!! in reply to mjbrown, 05-03-2006 06:19:48

The local coop here gives until July 1 to use what was paid for before March 1.

So I bought what I thought I needed for spring and to refill for a good part of the fall harvest.

I can hold 1500 gal.

Gary

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Animal

05-03-2006 08:55:50

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Re: O/T Fuel and you!! in reply to IaGary, 05-03-2006 06:26:05

For me this year it is going to be killer, between fuel and wire for the baler I don't know if the hay will be worth fooling with. Alf alfa bales brought $2.50 a bale 20 years ago picked up in the field,and thats about all you can get for it today. We have a farmer in this area that farms big for this area,last winter he was selling big rounds of mixed grasses for $7.00 a bale delivered locally! How can a small farmer that does not qualify for subsides compete?

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