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Friday, March 12, 2010   42º F

Updated 05/07/2008 05:23 PM

Farmers looking for ways to cut costs

By: Amy Ohler

Farmers looking for ways to cut costs
JEFFERSON COUNTY, N.Y. -- For the past 40 years, Donald Holman has been operating his beef cattle farm pretty much the same way. But with fuel costs at an all time high, he has to change the way he does business.

"We have to figure out different ways of doing the same thing. Getting the crops planted, harvesting the crops with this increase price of fuel and still be able to eat it until the price of cattle improved to where it reflects those in cost," said Holman.

Holman, along with other farmers, say they're not to blame for rising prices.

"Well as dairy farmers, we're kind of getting the short stick also because we're the same as a consumer. We're paying the high cost of the fuel, high cost for our feed inputs and everything else," said Mike Burger, owner and operator of Deer Run Dairy.

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Burger says fuel prices might just drive some farmers out of the business.

At Holmdale Farm, fuel costs have doubled. Last year, it cost the farm about $25 an hour to operate its three tractors. Now it’s costing at least $50 and that's just in fuel.

"I'm hoping that in the long run it will work out. As much as I like to sell $6 corn, the bottom line is $6 corn is not in agriculture's best interest because we're going to lose consumers over this," said Holman.

Holman and other farmers say they're noticing that more consumers are starting to purchase local products, which is a win-win for both parties. It cuts out the transportation costs and helps the farmers' bottom line.

Holman says he's going to have to add 10 to 15 cents a pound on the meat he sells just to keep his head above water. Farmers say they're also noticing that some consumers are starting to grow their own produce to cut costs.