Below is the OCR text representation for this newspapers page.

WEDNESDAY, JUNE 18, 2008 THE BANKS COUNTY NEWS PAGE 11A Rising production costs hurt Georgia farmers Rising production costs - what it costs a farmer to produce a crop - are consuming most of the profit farmers might receive from the record prices crops like corn and soybeans are bringing. “Although some crops are bringing record prices, farmers are paying record prices for things such as fuel, fertilizer, feed and seed that go into producing our crops and raising livestock,” said Henry D. Banks, Banks County Farm Bureau president. “The higher commodity prices our crops are bringing are barely covering our higher production costs. We’re feeling the pinch of higher fuel costs just like our customers.” Higher energy prices, increased demand from China and India for agriculture production sup plies and the weak value of the U.S. dollar are all factors contributing to higher production costs for farmers and ultimately higher food prices for consumers, economists say. “There’s been a significant increase in the world demand for agricultural supplies used in producing crops that are made from petroleum. In the last five years, there has been about a 14 percent increase in the demand for fertilizer worldwide reflecting the population and consum er growth in China and India. In the U.S., we’ve actually seen many of the plants that produce nitrogen fertilizer shut down, so we’ve lost about 40 percent of that production capacity and are importing about 50 percent of the nitrogen we use in the U.S. We also import over 90 percent of the potash products we use for fertilizer,” explains University of Georgia agricultural economist Dr. John McKissick. “Keep in mind that the dollar has depreciated about 25 percent in the past five years. This means the prices of imported input products have increased about that much. It’s a combination of all these factors that have pushed up production costs.” UGA economists predict it will cost Georgia farmers 14 percent more to grow cotton this year than last and 49 percent more to grow corn. The production costs for growing peanuts are up 21 percent from 2007, while the production costs for soybeans are up 49 percent. Since 2002, costs are up between 40 and 75 percent for these same crops. All of these production costs estimates are for irrigated crops. Drought conditions or sporadic rain make it necessary for farmers to irrigate their crops. Irrigation systems are fueled by diesel fuel or electricity, both of which have seen price increas es. In 2007 alone, total cash farm expenses rose to $222 billion, according to the USDA. “As supply and demand conditions change, the prices farmers receive are most likely to fluctu ate, whereas the cost of production inputs, such as fertilizer, are more less likely to weaken,” explains McKissick. “Rising production costs have eroded many of the benefits farmers are perceived to reap from high commodity prices. For perspective, consider that food prices have increased only about four percent in the last 12 months.” Glenn Waller, a row crop and cattle farmer in Washington County, has recorded the prices he has paid for production supplies and the income he has made from his crops since 1965. In 1998, he joined forces with Washington County Extension Agent Sidney Law to compile this data to chart how production costs, farm income and food costs have risen through the years. “Farmer costs have increased almost 12 times what they were in 1965 to 2008, however the most important person in the food production process, the farmer, has only received an increase of 1.5 times for the farm products he produces during the same period of time,” Law explained. “However, during the same time period, food prices have increased more than seven times.” Farmers receive only 19 cents out of every retail dollar spent on food, according to the USDA Economic Research Service. Off-farm costs, which include marketing expenses associated with processing, packaging, wholesaling, distrib uting, transporting and retailing food products, account for the remaining 81 cents of every retail dollar spent on food. In 1968, farmers received $1.50 a bushel for corn. By 2006, corn was bringing $2.68 a bushel. Today it’s averaging about $6 a bushel. That’s an increase in farm income from corn of only 233 percent from 1965 to 2008. Meanwhile, cornflakes costs 31 cents per pound in 1965, cost $2.99 a pound in 2006 and $2.82 a pound in 2008. That’s an increase in food costs to consum ers of 810 percent from 1965 to 2008. In 1965, it costs Waller $12 to buy a bushel of seed corn for planting. By 2006 seed corn had risen to $95 a bushel, and in March 2008 seed corn cost $150 a bushel. In 1965, Waller paid $38 a ton for standard fertilizer that contains nitrogen, potassium and phosphorus. By 2006 a ton of the same fertilizer costs $268. Today the fertilizer averages $420 a ton. In 1965, Waller paid 15 cent for a gallon of diesel fuel, which is used to run most farm equipment, By 2006, diesel fuel aver aged $2.46 a gallon. This year it’s averaging more $4 a gallon. In 1965 a 94 horsepower (HP) trac tor that Waller uses to plant his corn crop costs $6,500. The cost of a tractor with the same HP costs $53,000 by 2006, and it cost $58,000 today. In 1965 a four-row grain combine Waller uses to harvest his corn crop cost $69,000. By 2006 the cost of a combine rose to $153,000 and increased an additional $333 in 2008. “American consumers enjoy the most stable and safest food supply in the world thanks to the efficient agriculture infrastructure we have in our country. USDA statistics show that American shoppers spent less than six percent of their income on food in 2006, a lower proportion than any other nation. In most of the world, consum ers spend as much as 55 percent of their income on food each year,” Banks said. “If we think we have problems now because we are dependant on imported fuel, imagine life if we were dependant on imported food.” Founded in 1937, Georgia Farm Bureau is the state’s largest farm organization. Free HIV testing to be offered June 27 Health department hours expanded The Banks County Health Department will offer free HIV tests on Friday, June 27, from 8 a.m. to noon. The free screening is in obser vance of National HIV Testing Day. Patients may learn about their HIV status in 20 minutes. The Center for Disease Control and Prevention says up to 1.1 mil lion Americans are HIV positive, with 225,000 to 315,000 people not knowing that they are infect ed. In an effort to accommodate working parents, the Banks County Health Department is offering ser vices until 7 p.m. every Tuesday during the month of June and July. The office will close at noon on the first Friday of the month and at 3 p.m. on the other. The later hours are intended to help parents get their children’s immunizations and to utilize other health department services. For more information, con tact the health department at 706-677-2296. AARP to sponsor candidate debate All three candidates run ning for the United States House of Representatives from the 10th Georgia Congressional District will be participating in a candidate debate sponsored by AARP Georgia at 6 p.m. on Tuesday, July 1, at Cornelia United Methodist Church The debate will be moderated by April Reed from Windstream Channel 4 and the panelists are Michael Harvey from WCON-FM and Kenneth Melichar, a professor of sociology at Piedmont College. AARP Georgia has 1.1 million members in Georgia and 85,118 members in the 10th Congressional District. Anyone interested in the debate, regardless of age or AARP membership, is welcome to attend. “We are looking forward to the opportunity to find out where each of these candidates stand on issues important to us,” said Michael Carroll, AARP member and volun teer from Cornelia. “This is a rare opportunity to be able to compare - side by side and apples to apples - the candidates seeking to represent us in Congress.” Republican Primary opponents Congressman Paul Broun and Representative Barry Fleming, as well as Democratic party nominee Bobby Saxon, will be at the event. Cornelia United Methodist Church is located at 275 Wyly Street, Cornelia. Call 367-5233 to subscribe to The Banks County News today! In Maysville • Old Maysville Fish House 706-652-0070 Hours: Mon. through Sat. 6:00 a.m. - 2:00 p.m. • Sun. 11:00 a.m. - 3:00 p.m. Fri., & Sat. Nights 5:30 p.m. - 8:30 p.m. FRIDAY NIGHT All-You-Can-Eat Catfish / Italian Night SATURDAY All-You-Can-Eat Catfish / BBQ U Serving Daily Specials with a full Breakfast and Lunch Menu including a Children’s Menu! BOOK YOUR SUMMER PARTIES NOW! Offering Birthday Parties, Corporate Events, Family Reunions, Church Group Events and More! 2 HOUR UNLIMITED PASS $19.99 Good for Grand Opening days, June 20 and 21 only. Includes: Go-Carts, Bumper Boats, Mini-Golf, Tornado Ride, Rock Wall, Bumper Cars, Spider Zone, 1 Session Of Laser Tag & One Bucket Of Balloons For Water Wars. All riders MUST meet Height & Safety requirements. No cash value and no substitution. Available!, Closed-in shoes required for go-karts. Socks required in inflatables. 706-335-3866 40155 Hwy. 441, Commerce, GA 30529 Located at Interstate 85 at exit 149 just past the Wal-Mart www.funopolisfamilyfuncenter.com Hours: Mon.-Thurs. 11 a.m. - 10 p.m., Fri.-Sat. 11 a.m. - 11 p.m., Sun. 12 p.m. - 9 p.m. / F«3 Prime Advantage Checking 3.50% apy* FREE FREE FREE FREE Online Banking Bill Pay Debit Card (With Approval) Box Of Checks Upon Account Opening & One Box Per Year *$0-$3,499 = 0% *$3,500 and up = 3.50% APY *Interest Rate 3.44%. Annual Percentage Yield 3.50%. APY based on 365 days. Annual Percentage Yield (*APY) is accurate as of 6/13/08. Interest rates are subject to change at any time and determined at bank’s discretion. Monthly maintenance fee of $15 will apply if balance falls below $3,500 during statement cycle. Reimbursement of ATM charges will be limited to $8 per month. Minimum opening deposit of $100.00 is required. Please contact a FCB representative for current interest rate information. MEMBER First Commerce Bank A Division of First Covenant Bank 1731 North Elm Street • Commerce, GA 30529 706-335-8300 or 1-800-332-8231