K-State Study: Rising Energy Prices Will Hit Farmers, Ranchers

A new surge in oil prices will hit farmers right in the bottom line.  New estimates suggest a $90-per-barrel market would significantly raise production costs across the board.

Kansas State University economist Gregg Ibendahl said higher oil prices are already creating a ripple effect through key farm inputs like diesel fuel and fertilizer.

“$90 oil would add more than a dollar per gallon to the fuel costs, and that could easily mean another $10,000 per year in total fuel expenses,” he said.

Fertilizer prices, Ibendahl added, are just as big a concern because they’re closely tied to the energy markets.  The study showed rising oil prices could push fertilizer expenses up by 10%.  For the average grain farm, that translates into roughly $12,000 in additional costs.

Click Here to read Ibendahl's report.

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