Site last updated: Saturday, October 10, 2026

Log In

Reset Password
Butler County's great daily newspaper

Farmers face energy woes

Fertilizer costs on the rise also

During January and February, many producer meetings are conducted.

These meetings give producers the opportunity to keep abreast of new production techniques. Many times just a review of current production methods will generate a few good ideas to improve efficiency.

Several of the winter meetings offer pesticide update training credits. Producers that use pesticides must attend update training each year to accumulate credits toward recertification by the state Department of Agriculture.

V

arious agricultural businesses offer open house specials in conjunction with pesticide update training.

One common theme evident at winter meetings is that producers get the chance to visit with other producers, friends and neighbors that in many cases they have not seen since last year's meeting.

Another

aspect

is that the discussion will involve energy prices.

The cost of energy has a huge impact on agricultural operations. Regardless of the type being used — propane and natural gas for grain drying and greenhouses, or gasoline, diesel, kerosene and electric for other purposes, the cost of energy is hurting everyone's pocketbook.

For producers trying to purchase fertilizer for spring, high energy costs have negatively impacted fertilizer prices.

Take nitrogen, for example. If natural gas prices go up, so does nitrogen fertilizer. That is why a ton of nitrogen is now close to $400/ton. Depending on the rate applied, that will fertilize eight to 12 acres of corn. Remember this is only nitrogen — phosphorus and potash has not been mentioned yet.

All are critical to successful crop production. I spoke to a farmer who told me he priced fertilizer — $365/ton — and sold a load of corn yesterday for $1.85/bushel.

He went on to say in 1962 he sold corn for $2.10/bushel and paid $86/ton for fertilizer.

Some may wonder how do farmers survive? It is simple — some don't. For those that continue, the yield to acre ratio has increased substantially.

Efficiency has increased along with production. However; even the best operators will admit the margins are very slim. Rising land costs, real estate taxes and lack of affordable labor combined with equipment costs, weather issues and high energy costs will make it difficult to meet cash flow on some grain farms this year.

One avenue worth pursuing on some farms to generate extra revenue would be to sell the old equipment parked in the fence row or pasture. Scrap iron prices are favorable and many farms have old, junk equipment sitting around serving no purpose. Some producers would be surprised at how many loads of scrap they have laying around.

This is not to suggest selling the parts machines or the project item that you want to restore some day. Many producers will find they own enough scrap to purchase a few tons of fertilizer without selling "must-keep" items. On the positive side, consider how neat and clean the farmstead will appear without the scrap fixtures.

Note the premise is not intended in any way to imply farmsteads are not already neat and clean; but rather just promote the idea that some producers own some old scrap equipment that could be turned into cash. No harm is intended. I realize this article may be sensitive to some.

Luke Fritz is executive director of the Butler County Farm Service Agency.

More in Agriculture

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS