April 7, 2000

While the larger impacts of higher fuel costs, provided they hold throughout the 2000 crop year, are not expected to hit until 2001, increases in diesel, gasoline, and oils are being felt by many farmers now. Johnson County dairyman Larry Hanna, who with his son, David, milks around 575 cows and grows much of the feed for the herd, is just one.

Like most dairy operations, the Hanna Dairy, located near Godley, is fuel intensive, with various types of trucks and equipment which run day in and day out. The Hannas spent a little over $40,000 in fuel costs alone in 1999. Even if fuel levels off at current prices, the same amount in 2000 would exceed $60,000.

"It’s really going to hurt if the prices stay up, or rise more. The thing is, these are costs we can’t pass along," says Hanna.

The Hanna operation encompasses about 2,000 acres of owned and leased land, spread out over Johnson County—which means using more fuel to get from one place to another. The dairyman has between 375-400 acres of corn he grows for silage; about 250 acres of coastal, which he cuts and bales; almost 400 acres of wheat, which he typically grazes and combines; and the balance in pastures for rotation.

In addition, the Hannas send their truck to Cargill, in Wichita, Kan., five or six times a month year-round for soybean meal.

"We get about 6.5 miles to the gallon and it’s 325 miles one way," he notes.

That, along with operating other vehicles and equipment, adds up.