The brothers who own Donaldson Farms in New Jersey have discussed the impact of skyrocketing inflation on their business and warned that they will have to pass the rising costs onto consumers.
In interviews with former Congressman and Fox News contributor Sean Duffy, aired on “FOX Business Tonight” on Wednesday, Gary, Greg and David Donaldson explained the impact of their higher input costs for everything from oil at work.
Fuel “is probably the lifeblood of the American farmer,” noted the Donaldson brothers, noting that they use it “every day for pretty much everything we do.”
They said last year a 25-pound bag of fertilizer cost them $ 30 a bag, and now it’s about $ 50 a bag.
The brothers pointed out that the cost of plastic, used to plant pots and greenhouse covers, is also on the rise.
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The brothers provided the information a week after it was revealed that inflation hit a new 40-year high in February.
The consumer price index rose 7.9% year-on-year, according to data released last Thursday by the Bureau of Labor Statistics. Month over month, inflation rose 0.8%.
From January to February, nearly all categories of goods and services had a price, with gas accounting for nearly a third of the price increases. Spending costs rose 1.4%, the largest increase in a month since 1990, apart from a pandemic-induced price hike two years ago. The cost of fruit and vegetables increased by 2.3%, the largest monthly increase since 2010.
For the 12 months ending February, food prices jumped 8.6 percent, the largest year-over-year increase since 1981, the government said.
The data for February was taken before the Russian invasion of Ukraine, which caused a further increase in the price of oil.
|UNITED STATES OIL BOTTOM LP
|UNITED STS BRENT OIL FD LP UNIT
US West Texas Intermediate (WTI) crude topped $ 100 a barrel on Thursday, while Brent, the global benchmark, hit $ 105.
The Donaldson brothers pointed out that rising labor costs in the area are also impacting their business, noting that a nearby department store now has a starting salary of $ 24 an hour, making it difficult for them to hold onto their business. workers unless their wages are at par.
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They also said that taxes and regulations add other challenges, noting that they would like to expand their retail business, “but with regulations and obtaining approvals, sometimes the cost is much higher.”
The brothers also pointed out problems with the government’s push for renewable energy, noting that solar panels “are being set up all over the farms. [and] they are occupying first-rate agricultural land. “
As they move towards renewable energy, they urged the government not to “stick it down our throats” and to “see what is happening here in the real world.”
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