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About The Observer. (La Grande, Or.) 1968-current | View Entire Issue (July 21, 2022)
| 5 Inflation: Continued from Page 4 landing on the agriculture industry this year. Phillips pointed out that everything that he orders to operate his ranch, and every- thing he sends off to market, including cat- tle, makes the journey powered by fuel, and usually diesel. Fuel prices, and in particular for natural gas, have direct effects on the cost of fer- tilizer, which uses large amounts of natural gas. U.S. natural gas prices are at a 14-year high, according to recent reporting in The Financial Times. Mark Ward, whose family grows pota- toes, wheat, peppermint and alfalfa in Baker Valley, said inflation is offsetting, or worse, the benefits from rising prices for some farm products. “The wheat price has doubled, I hear from people,” Ward said. “But so has my fertilizer cost. So has my cost of diesel. The only thing that’s been stable is elec- tricity. Something’s got to change on the production costs. We can’t sustain this. It makes you wonder how you can stay in business. It’s scary.” “IT IS GOING TO BE A REALLY CHALLENGING YEAR FOR GUYS THAT HAVE CATTLE AND RAISE HAY WITH THOSE ESCALATING COSTS.” — Todd Nash, Wallowa County rancher and president of the Oregon Cattlemen’s Association Ward cited as an example the cost of planting and raising potatoes, a vital crop for his family’s operation. Last year it cost $3,600 per acre. This year it’s over $5,000. “It’s getting when the risk is greater than the reward,” Ward said. Fertilizer costs spike Costs of a majority of national retail fer- tilizers were lower in June than May, accord- ing to prices tracked by agricultural data analysis service DTN. This was the first time since the third week of November 2020 that most fertilizers were lower. Six fertilizers’ prices were lower than May, but none was down a substantial amount. DTN designates a move of 5% or more as significant. Average price for urea was $979 per ton and anhydrous $1,529. Two fertilizers were slightly more expen- sive in June than in May. The average price of UAN28 was $633 per ton and UAN32 $731, an all-time high. On a price per pound of nitrogen basis, the average for urea was $1.06, anhydrous $0.93, UAN28 $1.13 and UAN32 $1.14. See Inflation, Page 11 Jayson Jacoby/Baker City Herald A swather cuts alfalfa in a field in Baker City on June 16, 2022. Farmers and ranchers say production costs, including fuel for equip- ment and repair parts, have risen substan- tially this year, largely or completely offset- ting the benefits of higher crop yields due to a damp spring. Your “one stop solution” for all your Summer projects! MAKERS of STONE and MASONRY VENEER Patio Pavers - Retaining Block - Decorative Concrete Supplies - Pipe - Geotextiles - BASF Stucco - Manufactured Masonry & Veneer Stone www.nwconstructionsupply.com La Grande Baker City Pendleton 541-963-7368 541-523-7368 541-276-7368 Pasco 509-545-4055
