The Franklin News-Post
P. O. Box 250
310 Main Street, SW
Rocky Mount, Virginia 24151
540-483-5113
Fax: 540-483-8013
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Staff Photo by Joel Turner:
Farmers in Franklin County are facing higher costs for
fuel, fertilizer and feed prices for their cattle if they do not produce their own feed. |
Monday, July 14, 2008
By JOEL TURNER - Staff Writer
While some consumers are experiencing sticker shock at the grocery stores, farmers say prices would be even higher if they accurately reflected their increased production costs.
Food prices are rising, but farmers in Franklin County and other areas in Virginia said the prices they receive for their products are not increasing.
Out of every dollar spent on food, the farmer receives only 19 cents, according to the American Farm Bureau.
"It'd s global market more now than ever," said Spencer Neale, a commodity and marketing specialist for the Virginia Farm Bureau.
"Farmers are facing all these things that are really beyond their control," Neale added.
"Fuel, fertilizer and feed prices have doubled, if not tripled, in the past couple of years," said Nick McNeil, a beef cattle and produce farmer.
"Basically, everything we have to have to keep doing business has gone up," he said.
A steer at the feedlot is worth about $1,300, he said.
"By the time it gets to to the retailer, the value has doubled. Someone in the middle is making a lot of money, and it's not the farmer," McNeil said.
"Our input costs have gone up so much that our net income is considerably less," he said.
Consumer food prices have risen, but not nearly as much as people are led to believe, Neale said.
According to the Bureau of Labor Statistics March 2008 Consumer Price Index, food and beverage prices inﾠMarch increased just 0.2 percent from February's prices.
The index for daily products declined 0.8 percent in March, but milk prices were 13.3 percent higher than a year ago.
For cereal and bakery products, prices in March were up 1.3 percent. Bread prices increase 2.1 percent in March, which was 14.7 percent higher than in March 2007. |
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