It's the question many of us are asking... Why are producers paying so much to fertilize their crops? And now our state is leading the way in finding some answers. Reporter Sarah Gustin has more on the issue... (Sen. Byron Dorgan / (D) - ND) I don't think anyone understands it. It is true that the increased cost of oil and petroleum would increase the price of fertilizer, but not to this degree. Senator Byron Dorgan, North Dakota Farmers Union and other state Agriculture groups are meeting with the Federal Trade Commission...in attempt to get to the bottom of why fertilizer prices are on the rise. Dorgan has requested an investigation, but he says the FTC will not guarentee that they will perform one. And so to make his agrument a little more convincing...the FTC is in Bismarck hearing from those the price tag is really affecting. (Woody Barth / NDFU Member and Producer) Our costs on our farm have gone up dramatically. What used to cost 20 per acre for our fertilizer costs are now 30 dollars an acre, so we have seen a dramatic increase in fertilizer cost and if we had to buy that same fertilizer today, it would be that much. Probably closer to 40 dollars an acre. Dorgan says fertilizer prices have risen 70 percent in the last year. He says in 2005 North Dakota farmers paid 400 million dollars for fertilizer. And at today's prices they are paying about 800 million dollars. (Sen. Byron Dorgan / NDFU Member and Producer) It is true that commodity prices are up, but it is also true that the input costs for these crops are climibing dramatically. And this is just one example, but is one of the most signficant examples because fertlizer is a heavy component of the expense of a family farm operation. And you go from 400 million dollars a year to 800 million dollars year in costs for North dakota farmers that is a big, big problem. Dorgan says while increasing petroleum prices are to blame for some of the increase...high energy costs aren't the only thing driving the price. (Sen. Byron Dorgan / (D) - ND) If this is the market at work, that is one thing, but I don't think it is the market at work. (Woody Barth / NDFU Member and Producer) Probably a lack of too much industry concentration. Too few players in the market. And also the abliity for the fertilizer industy to form cartels for exports. In Bismarck, reporting for KX news, I am Sarah Gustin. Farmers paid slighty more than 500 per ton last year for anhydrous ammonia. This year they're paying almost 800 dollars.
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Added: Jun 11, 2008 |
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