FAPRI says fuel costs will remain high.
It is probably no surprise to farmers that planting crops this year cost them more--an average of 113 percent more than they paid four years ago, according to Lori Wilcox, an energy economist with the Food and Agricultural Policy Research Institute (FAPRI FAPRI - Food and Agricultural Policy Research Institute) at the University of Missouri. Fertilizer prices, which are largely based on energy costs, are up 70 percent for the same period, and Wilcox predicted a 10-15 percent increase in 2006 costs. Although such an extended price increase has not been seen before, FAPRI baselines indicate that both fuel and fertilizer costs for the next 10 years are expected to remain well above pre-2005 price levels. And, higher costs will tighten operating margins and increase risks for all farmers.
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