Prices Going Up & Business Still Tough

Prices Going Up & Business Still Tough. I’m Greg Martin with today’s Northwest Report.

Oil and natural gas prices are surging again - as the U.S. House closes in on a climate change deal that could add even more to energy costs. It’s not a good time for any industry - especially energy-sensitive agriculture - to face higher energy prices. But American Farm Bureau Economist Terry Francl says that’s exactly what’s happening.

FRANCL: We have seen gasoline prices for example are now trading well above the $2 level, 2 – 2 ¼. It’s a reflection of what’s happening with crude oil. Crude oil prices have increased about $15 a barrel since their mid-point around the mid-40’s and of course agriculture is very energy sensitive in this regard.

We have been hearing that there are sign the economy is turning around but those are few and far between. Businesses continue to struggle in the northwest as Chrysler is moving to close 24 dealerships in Washington, Oregon and Idaho. And the “Just Do It” company has announced they are laying off about 1750 employees with 500 of those coming from the Nike world headquarters in Oregon.

Now here’s today’s Washington Grange Report.

(GRANGE)

That’s today’s Northwest Report. I’m Greg Martin on the Northwest Ag Information Network.