Agri-podcast: Fuel price to affect farmers

The fuel hike expected from Wednesday will have a severe impact on the cash flow of farmers, warned head of economics and trade at Agric SA, Dr Requier Wait. He says petrol and diesel are used for ploughing, harvesting, machinery and transportation, making them critical components for both emerging and commercial farmers across the country. Wait says that the increase in the diesel price would have a negative impact on food inflation and income of consumers, who are already struggling to make ends meet. He adds the imminent hike in fuel prices was of concern because it is an important cost for farmers. Wait says the increase lowers the margin they can earn on their produce. He also says rising diesel prices must be taken as part of a changing cost structure and it directly impacts on farming margins. Wait says the good news is that farmers who use diesels could claim refunds back if they qualify according to legislation.