Diesel Prices Hurt Farmers

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(Sacramento, CA)
Friday, August 5, 2005

This is the time of year when harvest season is peaking for some crops and about to begin for others.  Dave Kranz of the California Farm Bureau says farmers are using equipment and implements that operate on diesel.

"Because of that the increase in fuel prices comes at a time of particularly high demand on California farms and ranches."

Kranz says most farmers will have to absorb the higher fuel costs.

"Those prices are set by the market and generally they are not able to pass along any increases of doing business. "

Farmers are also going to pay more to have their crops transported to market. Many trucking companies have added surcharge clauses to their contracts to cover spikes in fuel prices. 

 Analysts say the price of a gallon of diesel could reach three dollars, buy the end of this month