Rising energy prices for natural gas have been hurting homeowners. Now, economists say 2006 is going to be a rough year for farmers as well. The Great Lakes Radio Consortium’s Erin Toner explains:
Transcript
Rising energy prices for natural gas have been hurting homeowners. Now, economists say 2006
is going to be a rough year for farmers as well. The Great Lakes Radio Consortium’s Erin Toner
explains:
At the American Farm Bureau’s annual convention, agriculture economists predicted a 10 percent
drop in farmers’ income this year. Rising energy prices can affect a farmer’s ability to borrow
money, and they make nearly everything on a farm more expensive – fertilizer, fuel for
machinery and irrigation.
Keith Collins is chief economist for the USDA.
“As we look out to 2006, the general forecasts are for slightly higher diesel prices and for higher
natural gas prices which is the main component in nitrogen fertilizer, the most important fertilizer
that farmers use.”
Collins says to address the problem, the USDA is targeting grants and loans to energy production
and conservation projects in rural areas. The agency is also developing tools for producers to
evaluate and improve energy efficiency on their farms.
For the GLRC, I’m Erin Toner.