Agriculture Producers & Consumers Need Relief

GREAT FALLS, MT (July 2, 2008) – Montana Farmers Union (MFU) President Alan Merrill released the following statement.

“Last week the National Farmers Union (NFU) Board of Directors reconfirmed its concern for and commitment to independent family farmers and ranchers who are struggling with increased production costs. At the same time, they restated their concern for the less fortunate who also are facing rising food costs and can expect higher home heating costs this coming winter.

“The cost of fuel affects us all as we make our way to work,” said Merrill. “Whether you are commuting across town or across the field, rising energy prices have impacted us all dramatically. Media reports often suggest that farmers are profiting at the consumers’ expense, but it’s not that simple.”

“MFU, in conjunction with NFU, will work with Congress to address the challenges faced by both constituencies by ever increasing energy costs. The NFU Board has suggested that some relief is possible by offsetting or reducing previously approved tax incentives to large oil and gas companies that are reporting record profits.

“Energy has a greater impact on our grocery bill than commodity prices,” said Merrill. In fact, U.S. Department of Agriculture estimates that farmers and ranchers receive only 20 cents of every food dollar that consumers spend, with the other 80 cents going to marketing, processing, wholesaling, distributing and retailing.

As energy costs rise, there is increased incentive to shorten supply chains. We are collaborating statewide to help develop more local markets for Montana’s farmers and ranchers, and we encourage consumers to spend available food dollars on locally grown and raised food whenever possible.

-30-

300 River Drive North • PO Box 2447 • Great Falls, MT 59403 • PHONE 406 452-6406 • FAX 406 727-8216 • TOLL FREE 1-800-234-4071