Ag Produces Shoulder the Burden of Rising Production Costs & Drought

 

May 4, 2022

our community. The impact that the farm and ranch industry has on our local economy is mind boggling. As such, when the farmers and ranchers face tough times, everyone faces tough times.

In a typical year, Ag Producers face drought concerns, production issues as well as increased operating costs. The past two years, since the start of the Covid-19 Pandemic all of those 'Typical Issues' have been magnified ten fold while compensation hasn't come close to keeping up.

Farmers and ranchers are devoted members of the community who want to do nothing more than help their neighbor and be the ultimate providers. Montana Farmers and Ranchers produce enough crops, beef, pork and lamb to feed millions of people yet they are currently facing some of the toughest operating obstacles ever faced by any operation world wide.

Blaine County produces 204,033 acres of wheat as well as 66,716 acres of hay and is home to 44,917 cattle at last count as well as 3,036 sheep. This production comes at a cost and that number has doubled, even tripled, in just the past six months.

Fertilizer and fuel costs have dramatically increased in the past three to six months. Add in supply issues and drought and it has forced producers to reassess how they operate.

In areas affected by drought, some are looking at the option of not fertilizing at all or cutting back considerably to save money. According to retail fertilizer prices tracked by DTN, most fertilizers continue to be considerably higher in prices than one year earlier. 10-34-0 is 49% more expensive, MAP is 53% higher, DAP is 68% more expensive, UAN28 is 83% higher, UAN32 is 89% more expensive, urea is 100% is higher, potash is 103% higher and anhydrous is 119% more expensive compared to last year

Add this to the costs of fueling a tractor or a semi to ship cattle and just the increase alone is enough to force people out of the industry.

All this headache and trouble leads to fewer and fewer young producers being able to start up an operation no matter how bad they want to. Continuing on the family business can be overwhelming for young farmers and rancher, further shrinking producer and thusly creating a potential conundrum down the road.

"There aren't very many younger producers coming up to take place of the aging producers," said local Rancher Merle Young. "The same factors that are making it difficult for people that are already in business, make it impossible for young people wanting to start."

In addition to the supply disruption,and the rapidly increasing costs of fertilizer and fuel drought is once again a huge problem for local producers. Currently 52% of Montana is listed in Extreme

Continued on Page A2: Producers Shoulder Burden

Drought (D3) condition, including all of Blaine County.

The short term forecast shows some relief as far as moisture and precipitation, but the long term outlook has our region maintain its current drought status.

Fresno Reservoir is well below normal and isn't expected to come anywhere near reaching capacity. as a result dry land farmers and communities that make up the Milk River Watershed as part of the Milk River Irrigation District will have to make do with substantially less available water.

The summer forecast is also calling for above normal temperatures, meaning quicker evaporation of any moisture that does fall further exasperating the circumstance.

Times are tough for our local producers and our communities will best be served by coming together to help them out as much as they help the rest of us.

Our Farmers and Ranchers are proud citizens of the community and just want what they have earned, ""I don't think any of the ranchers are looking for government handouts or assistance. We just would like a fair shake at things. There's a big hearing now about how the packers are stacking the market. We need our voices to be heard," concluded Young.

 
 

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