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How will the cost of fuel affect your farming or ranching?

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mbu

05-03-2008 20:07:08




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How will the cost of fuel affect your farming or ranching?




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home grown

05-04-2008 13:54:35




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
More will go broke and just quit and the hungry will have to find a way to grow their own food and politicians better be looking for a new way to make a living very soon on another planet.



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John S-B

05-04-2008 13:44:42




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
I was planning on buying a tractor next year, Maybe up to a Farmall 806 or Ollie 1850 for haying, but I'm now looking at something a bit smaller and more economical to run. It would be nice to have a bit more HP, but I don't need to boost my ego that much!



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Steven f/AZ

05-04-2008 12:12:37




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 Re: How will the cost of fuel affect your farming or ranchin in reply to mbu, 05-03-2008 20:07:08  
I used to go home and help Dad, along with paying for some of the fuel in pickups, trucks, etc. and also parts.

The way prices have gone up for fuel and parts, I won't be buying any of it for the farm anymore. I'll be nearly donating my labor in hopes that he can make it work another year or two before retirement.



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kyhayman

05-04-2008 10:23:48




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
I'm really watching my fuel consumption, on everything, to try and determine if its economical to do or not. Depending on fuel price I decide each day which vehicle to drive (gas or diesel).

As to actual production, I'm holding my hay prices at near last years drought levels. My expetation is the weekend warrior horse people will be the first to go. They just cant keep paying these prices for hay and fuel with stagnant incomes. I wont sell hay below cost, others can but not me. If I carry over inventory, so be it. I'll cut back next year on production.

With custom work, its strictly cash and carry this year. No more work on the shares. Prices only good while with what fuel is on hand. Same with dozer, skid loader, and backhoe work.

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Dave from MN

05-04-2008 07:30:09




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
What little I need, I had. The fuel prices are gonna hit the people that didnt prebuy, and I think you gonna see the fall out from high fuel prices in the next 3-4 years when all the soccer moms and weekend "back in the high school day" dads, will have trouble paying the credit cards back that they are charging this gas to so they can drive the big bad trucks and SUV's to the golf course and church, and everywhere else they go that they needlessly drive the gas guzzlers to and from. I think we as a country are gonna be in a world of hurt in the next 3-4 years. I hope all you good people's operations on here will survive.

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Billy NY

05-04-2008 06:43:42




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
I dunno, it certainly makes one think, fuel economy is a big factor with equipment today, I agree with John, prices go up, people keep finding ways to pay, personally if it went to $10/gallon, what can you do about it, change your ways yes, but you won't ever change that price, though you really have to wonder what would have a more serious impact to the country as a whole, somehow in this pea brain of mine, I think theres some people that really don't like us in the mideast and they are enjoying seeing the stakes raised here, that and all the foreign manufacturing, just does not look good, we need a solid game plan by some people willing to do the necessary work, that leads to a political discussion just not worth having here.


We have 2 places, one is an active horse operation, but is scaled way back now, I've seen years with 25 boarders and the rest ours, maybe 40 or so, no way that's happening now. The wealthy stable owners will not be affected by fuel prices, they'll still have their new trucks and trailers, and hit all the shows, but like Jose said, the rest of us may change our plans. My stepmother is a trainer for a wealthy stable, so our horses ride along as part of the package, if that were not the case, who knows. Hay is abundant, good quality and in the $3-$4/bale range, feed is still high, that's not likely to change. They had a good year for hay last year, if it rained often like previous years, not good, hay would be harder to find, more expensive and poor quality, you should have seen what we were feeding in '06, almost like straw. Everyone is trying to dump last years hay right now, though with the price of things, hay will definitely increase this year I believe and rightfully so for anyone that does this hard work, we are very fortunate with hay production in this area, lot of horse places so there is a strong market. We have 2 tractors at that place, the little compact is easy on the fuel, so you just pay it, mostly mowing and loader work, we have not done our own hay since the early 80's, even so, these kind of places can be a real pain to run sometimes, some people are just such arrogant jerks, last time I worked up there I fired most of the help and got rid of a few boarders and riders, I've always liked the ag farming much better for some reason, grew up around a bunch of family dairy operations, all but one are gone.

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Allan In NE

05-04-2008 06:37:04




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
Losing money on every bushel I haul off the place.

Do I need a bigger truck? :>)

Allan



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Mike (WA)

05-05-2008 09:18:37




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 Re: How will the cost of fuel affect your farming or ranc... in reply to Allan In NE, 05-04-2008 06:37:04  
Nope- smaller place. Talked to a friend some time back who had cut back on his cattle operation- said he was losing 50 bucks a head, and so obviously couldn't afford to farm at his previous volume. Also bought some hay from a guy who had sold all his cattle- had bought 50 feeders the year before, and after all was said and done, he calculated that he made about a dollar and a half per head. I shoulda stifled myself, but couldn't resist coming back with my dad's old line, "Well, yeah, but you had the use of the cattle." He wasn't sure that was very funny.

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TomH in PA

05-04-2008 06:32:15




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 Re: How will the cost of fuel affect your farming or ranchin in reply to mbu, 05-03-2008 20:07:08  
The price of everything is up. Unless you aren't selling anything, it will be a wash at the end of the year.



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john in la

05-04-2008 05:58:55




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
Like any bussiness; they will adapt.
The price of there product will go up; they will tighten there belts to reduce waste; and adapt to the market as it is today or find something else to do.

The bigger question is ..... ..
How will higher fuel prices affect your family life????
I think this is where you will see BIG changes.



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IaGary

05-04-2008 06:38:55




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 Re: How will the cost of fuel affect your farming or ranc... in reply to john in la, 05-04-2008 05:58:55  
I agree John. The tourist industry will suffer first. Unless they get enough locals that are on short trips.

I bought my spring needs for 2008 in January.

The fall fuel supply may hurt a little more.

But if you divide it out per acre, fuel costs will cost me about $5.00 more per acre for the year for fuel only.

The kicker is the cost of all inputs, due to fuel, have risen.

Next year we may be down in margins just as we were when corn was $2.00 a bushel.If fuel would have went up before our grain prices did we would be in big trouble. Just like we will be if grain goes back down and fuel stays up.

Gary

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jose bagge

05-04-2008 05:34:56




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
This is a horse operation, just for reference. Day to day, it's hugely impacted hay price (particularly coming after last year's shortage) and feed price as well. We'll have to take board up 30-40 month shortly to accomodate that, and we'll have to get brutal with barn mommas tossing more hay/feed to their animals.
Cost of fuel already has us reducing show schedule- we'll probably only do two national events and then the world show in Mississpipi. This show moved from Okl City to Jackson, which is a reduction in miles for us and will save us a bit- but I wonder if there will be fewer west coast folks this year?
We'll be doing more boarding for monthly income and less buying/training on spec due to feed costs.

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rgvtx

05-04-2008 05:32:52




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 Diesel is $2.05, tractors keep running here... in reply to mbu, 05-03-2008 20:07:08  
For now most are beating the system by making the ten mile trip south and crossing over the Los Indios Free Trade Bridge into Mexico and filling their 105 gallon bed tanks with diesel at $2.05 per gallon. No reported dirty fuel, no taxes when you cross back into Texas and the fuel can be run in the vehicle since it's not dyed. The feds do monitor who comes and goes and what they bring back but for now there are no issues.

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Walt davies

05-04-2008 12:53:38




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 Re: Diesel is $2.05, tractors keep running here... in reply to rgvtx, 05-04-2008 05:32:52  
I over 2000 miles from Mexico do think it would pay for me to go there. Giggle.
Walt



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Joe from MN.

05-04-2008 04:36:55




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
GOVERNMENT SUBSIDIES .....



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old

05-03-2008 22:34:41




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 Re: How will the cost of fuel affect your farming or ranchin in reply to mbu, 05-03-2008 20:07:08  
Well with the cost of fuel I figure hay will be around $75 a bale by this time next year if not more. And then hauling fees around $3 a mile if not more. Getting to the point that you will need a still or something else to make ends meat and thats if your lucky



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JRT

05-03-2008 20:33:11




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
It is certainly effecting my farming. I filled up my farm diesel and gas tanks last spring and even at last years fuel prices it cost $2100.00. All I do farming is put up around 60 acres of square baled hay. Last year I fertilized heavy in addition to the high fuel costs. Well there was a drought that we are still in and I made barely enough to pay for the fuel and fertilize. This year I have not bought fuel or fertilize. Whatever crap grows on that 60 acres will get rolled up in rolls for cow hay and if turn a profit, fine, and if I don't it will at least get the fields cleaned up. I did not make enough last year to fill up the fuel tanks. I now pay as I go on fuel. I take 3 five gallon cans to the store and fill them up as I need them, and that seems to be more and more often, but at least I am paying as I go out of my monthly paycheck. Also I have 2 little chore tractors that run on gas and until gas got so high I did not realize how much of it they use. I now use diesel tractors for everything. The old gassers just sit in the shed and watch.

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jlmtractor

05-03-2008 20:27:34




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 Re: How will the cost of fuel affect your farming or ranc... in reply to mbu, 05-03-2008 20:07:08  
it is like anyother business you have more overhead or money to run your business than prior years and therefore you have less profit like any business



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RayP(MI)

05-04-2008 05:04:34




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 Re: How will the cost of fuel affect your farming or ranc... in reply to jlmtractor, 05-03-2008 20:27:34  
JLM has it about right - I'm going to be as fuel conservative as I can, but then I've been pretty careful all along. Like the fellow above, I'll be doing about 60 acres of hay - squares, hope I can get a good enough yield that I can sell some surplus and still feed my critters. Afraid that if we have a bumper year, prices will sag, and the whole profit thing will be a loss.



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