Energy crisis looms over ag, says Senator

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Energy crisis looms over ag, says Senator

WASHINGTON, Jan 18 (Reuters) - An energy crisis looms over U.S. agriculture because of rising fuel and fertilizer costs that could pinch food production, Senator Pat Roberts, Kansas Republican, said on Thursday.

During a Senate Agriculture Committee hearing, Roberts said zooming natural gas prices were tripling or quadrupling the costs of producing some types of fertilizers. High natural gas prices also will discourage the use of irrigation pumps, said Roberts.

"We have an energy crisis looming over agriculture," Roberts said.

Earlier this month, cotton analyst Sharon Johnson said higher irrigation, fuel and fertilizer prices might prompt growers to curtail use of fertilizers and irrigation, which could translate to smaller production.

Cotton plantings in the West were unlikely to increase this year despite improving prices because of the higher cost of fuel to pump and distribute irrigation water, she told the American Farm Bureau Federation.

Copyright 2001 Reuters Limited.

http://www.agriculture.com/default.sph/AgNews.class?FNC=sideBarMore__ANewsindex_html___44761

-- Martin Thompson (mthom1927@aol.com), January 24, 2001

Answers

High natural gas prices boosting fertilizer imports

For a demonstration of the impact high US natural gas prices are having on the nitrogen fertilizer import market, just look at data released by the Commerce Department, says the Fertilizer Institute. For the fiscal year to date, July-November 2000, US nitrogen imports are up by 586,000 short tons, an increase of over 27% for the same period in 1999. Data for the month of November show anhydrous ammonia imports up 37% over the previous year. July-November imports are up 17% over the previous year. The story is more dramatic for nitrogen solutions: Imports in November 2000 were up 74% over the same month in 1999, bringing the year-to-date total to a 175% increase in imports. Urea and ammonium nitrate imports are also up. Urea was up 56% for the month, over the previous year, and 40% for the year to date. Ammonium nitrate imports rose 59% in November over the same month in 1999. 01/22/2001 12:40 p.m.CDT

http://www.agriculture.com/default.sph/AgNews.class? FNC=goDetail__AFullstory_html___44776

-- Martin Thompson (mthom1927@aol.com), January 24, 2001.


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