Wednesday, February 29, 2012
Fuelish
Looks like the summer of our fuelish discontent is coming. Gas prices locally have topped $4.00/gallon and show no signs of slowing down. For the growers, this is a huge unanticipated cost. In modern agriculture, when you walk out the door in the morning, the fuel gauge starts moving, and it never stops. You get into your pickup and drive to the barn. You start the tractor to spread fertilizer or pesticides made with oil, you step into your airconditioned office cooled by oil generated electricity. Your employees all arrive by car and complain about fuel prices. Your irrigation system runs on oil. Your trucks deliver markets with oil guzzling gas or diesel engines. Etc., rinse and repeat. Virtually every move the modern farmer makes is lubricated with fossil fuels, and this summer is going to be a make or break year for many growers if the low price trend for most veg crops continues. If gas and diesel prices top $5.00, some older farmers may decide to close their doors if prices of their crops do not improve. On the brighter side, many small boutique, local growers will make money this year, since their proximity to affluent local markets willing to pay high prices for organic local food. The high price of oil will also likely spur innovation which will hopefully make farms more efficient. On balance, higher prices will probably do exactly what is necessary to wean Americans off the fossil fuel, global warming merry go round. The long term gain will be great, but the short term pain will shake up the produce industry.
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