Still farming, but for how long?

By RONNIE ELLIS
CNHI News Service

July 05, 2008 01:07 pm

— GRAYSON — Clifford Wells expects to receive 3 cents a pound more on his tobacco crop this year than he did last year.
Problem is, Wells is spending twice as much on fuel for his farm vehicles and nearly triple for fertilizer on the 320 acres he farms in Carter County where he grows tobacco, raises beef cattle and the corn and hay to feed them.
“I’m just trying to keep my head above water,” said Wells, 43, who lives on a farm which has been in his family for four generations. “But I don’t know how much longer I can hold out.”
His brother, Ricky Wells, 49, and his wife, Regina, 47, grow produce on six acres adjacent to Clifford’s farm, both part of the original family farm. He said if fuel prices continue to drive his expenses up and his profits down, he may have to “go back to public work.”
Ricky Wells cut by half the fertilizer he put on his crops this year, but his fertilizer bill doubled just the same. And he’s got another problem — he knows his customers are pinched by high fuel prices, and raising his prices on tomatoes, cucumbers, squash and other vegetables may cost him customers.
“I already see people are not going to pay more than last year because they’re hurting, too,” he said. “But it just doesn’t equal out and I don’t know if I can keep it up.”
He’s in a double-bind. He has generated a loyal customer base by keeping prices low. His customers come to Ricky Wells for quality and freshness, but they also come to save money.
Ricky used to raise and sell pumpkins. But as gas prices rose, his sales plummeted by 75 percent last year and he lost money on the crop. People aren’t going to spend money for decorative pumpkins when they are struggling to pay for food.
“I’m not even going to fool with them this year,” he said.
He’s going to try to cut his costs this year by not hiring outside help. But that means more work for him and Regina. He says that’s the only way they can make it.
Clifford’s wife, Heather, 38, is hoping to find work as a teacher after going back to school and getting her degree. Their three vehicles all have more than 200,000 miles on them and he’s delayed trading to save money. He’s replacing less fencing and putting off other maintenance on his farm. He and Heather want to leave their land for their two sons, ages 9 and 12, but Clifford thinks it’s unlikely they will be able to farm for a living.
“I’d like to make it five generations on this farm,” he said. “But unless we can get our prices worked out so we can make a profit, I don’t see it happening.”
He doesn’t think fuel and fertilizer expenses will go back down. He hopes instead he can see prices for his products increase “and kind of catch up with our expenses.” He says he’ll get $1.78 a pound for his tobacco this year, about what he got 20 years ago when he was paying $1 per gallon for his off-road diesel fuel. Now, he’s paying $3.89 and he expects it go to $4 within a month. His fertilizer costs, driven by the high price of petroleum, hurt even more, he said.
“I’m selling cattle for what I was selling them a couple of years ago, but I’ve got a whole lot more expense in them now,” Clifford said.
“This effect is eventually going to trickle down to everybody,” he said. “Just like it’s affecting my brother where he needs to raise his prices, but can’t. But the bottom line is, we have to raise prices sometime and that’s going to hit everybody sooner or later.”