March 16, 2014
Prices at the pump soar, knocking farmers hard. But the oil crisis hurts in other ways too. Not only do farmers have to dig deep because of higher fuel costs, they have other expenses skyrocketing.
Fertilizer is one such expense. The Nitrogen in the fertilizer gets more costly as petroleum gets more costly. And once you feel the pinch at the pump, farmers have already experienced the same pain.
Tom Stanley is a Virginia Cooperative Extension Agent. He notes, "The impacts are more acute here in the Valley, because we still have a very large agriculture industry and so the higher costs that farmers are paying impacts how much additional money they have to spend on other inputs and how much money they have to spend in the community."
The rising costs, though, won't really be passed on to the consumer. Higher prices at the grocery store will be more of a reflection of higher distribution costs network costs, rather than farming costs.