High energy prices across the board will make 2022 a challenging year for Alabama's farmers, according to Alabama Farmers Federation (ALFA) president and CEO Jimmy Parnell.
During an appearance that aired on this week's broadcast of APTV's "Capitol Journal," Parnell called on policymakers to ramp up U.S. energy production, calling what he referred to as "green stuff" not a "mature" idea.
"I tell people that everything we eat, drink, wear -- at some point, use diesel trucks to get it to you," Parnell said. "So, it's going to have a huge impact on our cost of doing business and eating and surviving -- all of those things everybody has to do. The cost of energy is huge. It's something we have got to get refocused on. We need to be focused on producing energy in the U.S. All of this green stuff may be a good idea, but it is not a mature idea. There is not something out there that takes the place of gas and diesel and oil at this point. So, we need to realize that and focus on production."
Parnell addressed the high cost of fertilizer and other input costs. He said farmers would have to have a good crop to meet cash flow expectations this year.
"[O]ur input costs on the whole crop -- we talked about diesel, that's a big deal," Parnell said. "Fertilizer, that is a huge deal. Chemicals, once again a derivative of energy -- the base product of most of the chemicals you use is some type of oil. All of it is exaggerated this year, making it very hard to be profitable. Product, commodity prices -- the corn, the wheat, the soybeans -- all of those, the prices are fairly good. But the input costs to grow that crop are so large that farmers need to make a bumper crop in order to cash flow. Small crop and high inputs will be a terrible pain for the farmers this year."
To connect with the author of this story, or to comment, email jeff.poor@1819News.com.
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