High oil prices are affecting farm practices and livelihoods and Sen. Kent Conrad, D-N.D., was at Jon Erickson's farm near South Prairie Tuesday to discuss his plan to ease the crisis.
"The best relief (from high oil prices) in the short term is reining in (oil market) speculation. For the longer term, we have to expand production and conserve use," Conrad said.
"One third of the price of oil is speculation. For $5,000 to $7,000, you can control a $100,000 contract in oil. That's pretty attractive to big money. If oil goes up 7 percent, you've doubled your money," he added.
Besides getting better control over oil market speculation, Conrad has four other points in his five-point plan to lower gas prices that focused on more long-term solutions. They include increasing domestic oil production, promoting fuel efficiency and alternative fuel vehicles, offering incentives for the development and production of alternative fuels, and developing coal-to-liquid fuels.
For farmers and business leaders dealing with higher prices, action on those plans would be welcomed.
"The cost to fill these (diesel) tanks the last four years has doubled, or more. Just the cost of putting in an acre of land has gone up significantly," said area farmer Jon Erickson.
"In '01, I spent $25,000 for fuel. The past years, it's been over $50,000," he added.
In addition to rising diesel costs, the rising costs of fertilizer is also causing concern.
"This fall, there's going to be a question of whether to apply fertilizer if the price is this high," Erickson said.
Farmers can only hope that commodity prices remain high to offset production costs.
The higher oil prices have
affected the price of constructing and repairing roads as well.
Dana Larsen, Ward County Highway Engineer, explained that asphalt products are the leftovers of a barrel of oil. With the rising oil costs, the costs of asphalt products has risen. In 2004, Larson said, asphalt was $125 a ton, while it was $390 a ton in 2006.
"That's a 312 percent increase. That's huge. That's where it's really hitting us," Larsen said.
Conrad hopes to do something about high oil prices with legislation.
"We really need people to get behind legislation that would make a difference," he said.
Conrad is a member of a group of 10 senators from both sides of the aisle who have requested that the Senate hold a one-day energy summit as soon as possible after the Fourth of July holiday.
