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Arkansas farmers say cost surge offsets price increases

JONESBORO, Ark.—Arkansas farmers have welcomed the higher prices that some commodities have been commanding, but growers say the increases have not been enough to offset higher costs and the effects of bad weather. Growers say they have paid more for fuel, fertilizer and other. And heavy rains and flooding delayed planting by several weeks or made planting impossible in the spring. Into the summer, hurricanes Gustav and Ike passed over Arkansas. Gustav dropped heavy rain for days and caused some wind damage. Most of the damage from Ike came from strong winds.

“Every crop farmers planted this year will be the most expensive crop they’ve ever planted,” said Jason Kelley, extension service specialist for wheat and feed grains for the University of Arkansas Division of Agriculture.

Arkansas crops were valued at $3.4 billion last year.

Cooperative Extension Service agent Steve Culp of Craighead County said there are projections of fertilizer costing $1,000 per ton next year and that fuel prices remain high. Fertilizer is close to the $1,000-per-ton mark now, agriculture officials say.

Growers who depend on loans at the start of each planting face an added uncertainty, considering the collapse on Wall Street. The government bailout is intended to make more money available for banks to loan, however it could be tougher to qualify for credit next growing season, officials said.

The rice and cotton crops sustained the worst of the hurricane damage. Some cotton growers reported boll rot and rice growers reported lodging, which is when stalks are blown down, and shattering, which is when trains are blown from the plant.

Lodged rice can be harvested, but it is a much slower and expensive procedure.

Tropical Storm Fay and hurricanes Gustav and Ike also helped drive up already high fuel costs as many growers topped off their tanks to complete the irrigation season. Wind and drenching in their aftermath also flooded and otherwise damaged crops in the fields.

Wind and rain from Gustav damaged fields mainly south of Interstate 40. Farms south of I-40 sustained the worst damage dealt by Ike.



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