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U.S.
Senator Member of the Agriculture, Energy and Veterans Affairs
Committees |
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For Immediate
Release September 6, 2005 |
CONTACT: Cody Wertz – Press Secretary 202-228-3630 Jen Clanahan – Deputy Press Secretary 303-455-7600 |
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| SEN. SALAZAR CALLS FOR HEARING ON HIGH FUEL COSTS EFFECT ON FARMERS/RANCHERS
WASHINGTON, D.C. – Escalating gasoline prices, spurred by the aftermath of Hurricane Katrina, are having an alarming effect on farmers and ranchers in Colorado and across the country. Today, U.S. Senator Ken Salazar wrote a letter to Senate Agriculture Committee Chairman Saxby Chambliss (R-GA) and Ranking Member Tom Harkin (D-IA) asking them to schedule hearings to examine the effect of high fuel prices on agricultural producers and rural communities as well as the steps the federal government can take to ease their burden. “Rising fuel costs are a major concern and burden to all Americans, in particular the impacts of these escalating fuel prices pose a particular challenge for our rural and farming communities, especially during harvest times,” said Salazar. “Taking an in-depth look at these impacts can only serve to help find solutions to aid our farmers and rural communities.” Included below is a copy of the letter Senator Salazar sent today. Dear Chairman Chambliss and Ranking Member Harkin: The devastation of Hurricane Katrina has had widespread consequences on communities across the country. We will continue to see its lasting effects, many of which have yet to be thoroughly measured, for months and possibly years to come. One clear effect of Hurricane Katrina is that both American consumers and businesses, in urban and rural areas, have seen effects of the rapid rise of gas prices. According to AAA, the national average price for regular unleaded gasoline is $3.04, nearly 72 cents higher than gas prices only one month ago and $2.96 for diesel, nearly 52 cents higher than the national diesel average last month. As high as these prices are, in many parts of my state, Coloradans are paying even higher prices. For example, in Durango the price of unleaded gasoline is $3.13 and diesel prices are as high as $3.16 and in Grand Junction prices are $3.13 and $3.06 respectively. In addition, analysts have warned that these prices are likely to remain at this level or higher and that the nation’s oil supply system might not return to normal for weeks, or longer. During harvest agricultural producers are some of the largest fuel consumers in the United States. As you well know, harvest has already begun in many areas and these producers are facing enormous fuel costs. I have heard from one Colorado farmer in Kit Carson County who has estimated that in order to harvest this year, he will need an additional $46,000 to cover fuel costs alone. I have also heard from another farmer in northeastern Colorado who, in order to cover the increasing price of fuel, has applied for additional loans at his bank only to be turned down because he is already overextended with existing loans. Given the years of drought and other natural disasters we have experienced in Colorado and across the country, I believe most farmers and ranchers are in financial crises. It is with this in mind that I urge you to schedule hearings to examine the effect of high fuel prices on our producers and rural communities as well as the steps the federal government can take to ease their burden. As you may know, the Senate Energy Committee, of which I am a member, has begun hearings on this matter. I believe, however, that the impacts of fuel prices pose a particular challenge for our rural and farming communities and, therefore, the Agriculture Committee can do the nation a great service by looking into this matter in depth. I thank you in advance for your consideration of my request and look forward to working with you on this and other important issues. # # # |
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