Poultry farmers hit by cold snap, heating costs From Staff Reports Published December 22, 2000 9:18 PM CST

An increasing demand and a dwindling supply of natural gas are driving prices higher than ever before.

With the bulk of what may be the coldest winter in decades looming ahead, consumers can expect to pay generously for heat.

Adequate heat in a cold spell isn't merely a luxury. For poultry farmers, the means of heating thousands of chicks is crucial, both to the chicks and the growers who need them to mature.

Dorman Grace said the cost of heating his houses is about 30 percent higher this year over last. It cost him $3,000 to heat his houses for his last batch of chickens, which were picked up just days ago.

The severest cold spell came after the birds had grown enough to better endure the cold. Grace expects his next batch to cost twice as much to heat as the previous one. The integrator he grows for helps with some of the cost, but it mostly falls on his shoulders.

Natural gas is merely a factor in the growing hardships of farming. Foreign markets, grain prices, gas prices, an overcrowded market, increasing environmental pressures and untold other issues affect the ability of the farmer to make a living.

"The poultry business is in decline overall," Grace said.

A third-generation poultry farmer, Grace has less expenditures than someone new to the industry. It's much harder for young people starting from scratch than it is for an established farmer, he said.

The growing price of natural gas is just one more hurdle for everyone.

"It's more difficult for young folks with heavy debt. But I'm an optimist. We're just going through a down time. It's hard right now, but it'll come back," Grace said.

Grace switched from propane to natural gas, because he thought prices would be more stable in the long run. It's a gamble either way you go if you're a farmer.

Fred Barnes uses propane. He spent $2,000 to heat two fewer houses than Grace. He uses propane for reasons other than cost. He likes having his heating fuel on site rather than depending on miles of line to pipe it in.

There will be expense either way. Walking with his feet low to the ground to push the young chicks out of the way before stepping on them, he said "In a chicken house you learn to shuffle instead of walk."

From a financial standpoint he might have said juggle instead of shuffle. Barnes said he easily paid more to heat his houses during the last batch than he ever has for previous batches.

His son Jonathan Barnes acknowledges the cost and initial sacrifices of becoming a farmer. But its all he really wants to do.

"It's a big expense to start out. You work now to get everything paid for and maybe down the road it will pay off," he said.

The price of propane jumped eight cents locally on Friday, bringing it to $1.59.9 per gallon. Propane is roughly one-half natural gas and the other half a by-product of crude oil.

Ken Watson, controller of Country Gas, a private company located in Sumiton with 10,000 customers statewide, said at this time last year the cost of propane was just over $1 a gallon.

The cause of the natural gas shortage is manifold. Watson said recent hot summers have increased the demand for electricity. Natural gas is used to fire power plants.

Conversely, another factor, according to a spokesperson of the Alabama Gas Company, is two recent mild winters during which there was a lesser demand for home heating fuel.

Consequently, less fuel was produced-- a simple matter of supply and demand. But now that a harsh winter has surfaced--last month was reportedly the coldest November in 106 years--the demand is high again and producers can't make enough.

Alagasco buys gas wholesale, according to the company, and whatever prices it has to pay for the gas are passed on to its customers. But prices are expected to come down just not this year.

The American Gas Association predicts the demand for natural gas will increase 60 percent over the next 20 years, according to the association's Web site.

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-- Martin Thompson (mthom1927@aol.com), December 23, 2000