posted on Oct, 19 2005 @ 11:06 PM
Farmers are worried about the soaring cost of fertilizers. In the early 1990's fertilizer cost $200/tonne, this year the price is $410/tonne. The
increase in fertilizer prices is a reflection of the methods used to generate the ammonia and nitrates they contain. The ingredients of the fertilizer
are extracted via natural gas which has skyrocketted in price along with oil. These increases in fertilizer prices for farmers will eventually be
passed on to the consumer via higher prices for all food.
OMAHA, Neb. - Dave Nielsen just spent nearly $14,000 to fertilize his crops, an amount he never could have imagined when he started farming 20 years
But the $410 a ton Nielsen paid is symptomatic of the crunch farmers are feeling this year as the cost of fertilizer soars. While rising natural gas
prices are causing concerns about heating costs this winter, farmers are wondering how they'll pay for fertilizer, which uses the energy source to
produce its main ingredients, such as ammonia or nitrates.
"There's just a lot of uncertainty in agriculture right now because of the energy costs, and fertilizer is probably the best example of what the
uncertainty means in their financial picture next year," said Rob Robertson, vice president of governmental relations at the Nebraska Farm Bureau.
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Forget fretting over petrol prices at the pump, you can always ride a bike or walk. But what choice do we have when the price of our food starts to
rise to ever increasing amounts? Fossil fuel prices affect the price of food in more ways than just fertilizer, the harvesting of the crops requires
fuel for tractors/harvesters etc, the transport to the factories/supermarkets requires fuel for trucks etc.
All these activities are tied to the price of oil. When the price of oil rises our price for food will match it. This is a grave threat we are facing
if the price of food just doubles. There is a likelihood of it increasing by much more than 200% if the theory of peak oil is accurate. $200/barrel of
oil will see food prices out of reach of most average families.
[edit on 19/10/05 by subz]