Agriculture facing its own Katrina

[Guest guest]

>By Jimmy Westerfeld

>McLennan County Farm Bureau President

>

>

>Agriculture today is facing a major catastrophe not experienced since the

>Dust Bowl days of the Great Depression. Based on expert economic

>projections, for the first time in decades, many U.S. farmers cannot

>possibly " cash flow " a crop or crops for the year 2006. Bankers are saying

> " No. " Many of us will not be able to farm this year or the next. The

>doubling and tripling of fuel and petrochemical prices are the last link

>in a chain of bad economic events.

>

>Since Aug. 29, the entire world has been focused on the aftermath of the

>terrible destruction of Hurricane Katrina. Then, to make a terrible

>tragedy even worse, Hurricane Rita slammed into Southeast Texas and

>Western Louisiana on Sept. 24.

>

>These two storms had an impact on the nation's fuel refining capacity,

>increasing prices beyond an already dismal situation. In agriculture, we

>cannot pass these prices along as other industries do. Ultimately, it

>means the numbers don't add up. If we can't show positive cash flow, we

>won't get our operating loans.

>

>For farmers, a Katrina-like disaster is building. It will soon swamp many

>family farming operations. Astronomical fuel prices, fertilizer and

>chemical costs have reached the point that even a modest profit is impossible.

>

>Farmers are receiving the lowest price for commodities that myself or most

>farmers can remember. Farmers are a proud group, usually not willing to

>protest. This time, I hope someone is listening. We are literally at the

>end of the turn row. That's a metaphor for desperation. Agriculture is in

>serious trouble.

The op-ed continues here:

http://www.txfb.org/TexasAgriculture/2005/102105/102105opinions.htm

Well worth reading IMO.

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