Farmers Take a Hard Hit: Low Gas Prices Not Keeping Everyone Happy

Fertilizer prices are the lowest they’ve been in eight years.

But farmers say they’re still scared to death.

From corn to soybeans…commodity prices are down across the board…and unless you have an exceptional crop, farmers say they can kiss their profit goodbye.

James Nelson is coming off a pretty good year as a farmer.

But instead of selling he’s sitting on most of his crops and it doesn’t look like that will be changing soon.
 
“The previous years were pretty good years so you save some money buy new equipment everybody was happy but now commodity prices spiked down so low,” says Moorhead Farmer, James Nelson.
 
“The farmer’s margins are really tightening up and same goes with our margins,” says Simplot Crop Advisor, Mark Ostlund.
 
Low oil prices have made commodities plunge. Corn is just about $3 a bushel. Three years ago it sold for $7.

Soybeans are also down nearly $7 a bushel in three years.

And that’s not all.
 
“Everybody is pretty scared to death of even trying to make money because the input costs are just so high right now,” says Nelson.
 
Nelson says he’s losing about $100 dollars an acre. And he says when farmers don’t make money, they can’t pass it along.
 
“If a farmer can save a few extra dollars they’re going to probably move on to the cheaper retailer,” says Ostlund.
 
“I’ve always believed the strength of our co-op is only as strong as our patrons so we want our patrons to be doing well,” says CW Valley General Manager, Curt Bjertness.
 
Because just like Nelson says a happy farmer makes a happy city.

Nelson says many farmers are turning to auction sales to cover costs.