3-17-08 by dugan
The hype that ethanol is the only driver of food grain prices is persistent and wrong. Here’s a short and to the point video from CNNMoney (thanks to Insider for spotting it) about farmers’ spiraling operating costs. Most of these costs are linked to petroleum, and are also driving food-crop prices. Family farmers aren’t the ones getting rich.
Price increases over the past year include diesel (up 68% and still rising fast), propane (53.6%), fertilizer (99%, and petroleum-based) and potash (125%)
The small Minnesota farmer interviewed in the segment estimates that he uses 6,000 to 7,000 gallons of diesel a year.
No wonder the head of the Minnesota Farmers Union can declare: "[Farmers’] input costs have eaten up the profits."