X-Message-Number: 22672 From: "Mark Plus" <> Subject: Natural gas shortage threatens food security Date: Mon, 13 Oct 2003 14:09:18 -0700 Considering that by now most of the protein in our bodies incorporates artificially fixed nitrogen, North America's natural gas shortage threatens long-term sustenance [Mark Plus]: http://www.agriculture.com/default.sph/AgNews.class?FNC=goDetail__ANewsindex_html___50725___1 Study shows how much sky-high natural gas prices hurt farmers By Cheryl Rainford News Editor Agriculture Online High natural gas prices have taken a financial toll on nitrogen fertilizer manufacturers. They've passed on the costs to farmers, but farmers haven't reduced usage, due to substantially increased imports. Those are the findings of a new study released Friday by the Government Accounting Office, the non-partisan research arm of Congress. Senator Tom Harkin (D-IA) used the news to call for better oversight of the natural gas industry, while Republican House representatives Richard Pombo and Billy Tauzin used the news to push for passage of an energy bill that would step up natural gas exploration on federal lands. The report quotes industry officials as saying gas prices in 2003 are again resulting in unacceptably high production costs and, as a result, a decline in production levels is occurring. "At one point in 2003, half of the nation's fertilizer production capacity was shut down because it was not profitable to operate," said Harkin in a release Thursday. "The high cost of natural gas has forced at least one major cooperative in the Midwest into bankruptcy and threatens the industry farmers, cooperatives, fertilizer producers as a whole." The cost of natural gas can account for up to 90% of nitrogen fertilizer production costs. When natural gas prices increased in 2000 2001, nitrogen fertilizer manufacturers in the US reported money woes resulting from the resulting increase in production costs. Concerns also arose that US farmers would face much higher nitrogen fertilizer prices and that there might not be an adequate supply of nitrogen fertilizer to satisfy farmers' demands at any price. _________________________________________________________________ See when your friends are online with MSN Messenger 6.0. Download it now FREE! http://msnmessenger-download.com Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=22672