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Highlands Ag Industry Continues To Face Challenges

Jasmina Meyer/Highlands Today

Over 30 years ago the Karlson's discovered this river bottom grass that originated in Kruger National Park, South Africa. Dr. Dick Karlson says his ranch was the first to introduce the grass in Highlands County and it has become the preferred grass for cattle in Florida.

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By Bill Rogers | Highlands Today

Published: January 18, 2009

SEBRING - The price of feed and fertilizer has nearly doubled. Transportation and the cost of labor are up as well. The threat of more government regulation always seems to be lurking over the farmer and rancher in Highlands County as well as across the country.

But those who make a living in agriculture are devoted to it and continue to persevere.

"We're in, like everybody else in most industries today, we're in a survival mode," said

Randy Gornto, livestock agent for the Highlands County Cooperative Extension Service.

"We're trying to look at ways to cut our costs to be sure we are as efficient as we can. There is not anybody who is much more efficient than the American farmer. We get by on a lot less than most everybody thinks about."

While Highlands has set as an economic development goal to attract more manufacturing and professional jobs, agriculture remains an important staple in the county's economy.

According to the Highlands County Economic Development Commission's employment by industry numbers, 13.7 percent of the workforce in the county worked in agriculture and mining in 2007. Total employment that year was 40,076.

Agriculture ranks fourth in number of employees. Trade, Transportation and Utilities employs the most with 18.4 percent. Education and Health Services is second with 16.3 percent and government is third with 14.1.

Highlands is a major player in the state in agriculture. According to the Florida Department of Agriculture, the county ranks third in commercial production for citrus.

There is a large ornamental plant industry.

Highlands ranks fourth in beef production. Gornto said the county has approximately 107,000 head of cattle, which is still more cows than people. The county's population is just a little over 100,000.

Gornto said ranchers are going through a tough time due to the increased costs of production.

Agriculture is unique in that it doesn't set prices; the market does, according to Gornto

"We're strictly market driven," Gornto said. "We're based on a daily market set. The only industry that does that is agriculture — whether it is produce, sugarcane — anything that we do is set not by us."

Gornto noted that looking at the market last week the price ranged from 72 to 74 cents for steers that weigh between 450 and 500 pounds.

"That's not any money compared to a year ago at about $1.16," he said. "Íf your costs have gone up 30 percent and your product has gone down 30 percent, you've gotten really squeezed."

Gornto said many ranchers have cut back on the amount of the properties they fertilize and pay a little more attention to where the fertilizer is going.

Dr. Dick Karlson has 150 beef cattle on his Karlson's Beefmasters operation near Venus.

Karlson said cattlemen are "under a great deal of pressure" and are working on a slim profit margin.

The cost of fertilizer has doubled in one year. The cost of feed has almost doubled and that quickly adds up when it is ordered by the ton.

There are also government regulations.

But despite those things, Karlson said being a cattleman "is a way of life" and something he enjoys.

"I spent 40 years developing a ranch, purchasing and developing it into a profitable operation," he said. "It has been a challenging and exciting adventure.

"I don't have to pay to go to a gym," he added. "My doctor told me to keep up the exercise on the ranch."

Karlson, who has been retired from his orthodontia practice for 12 years, added that he wanted to do something productive in retirement.

Bob Butler is a third generation dairy farmer and is president of Butler Oaks Farm Inc. near Lorida. Butler said the farm has 900 dairy cows and some beef cattle.

Butler, whose two sons are both involved in the farm, agrees with Karlson about it being a way of life. He said he has been able to make a living and do something that he truly enjoys.

"The business has been pretty good to our family," he said.

Butler said there is a lot of risk and noted it's a challenge to keep a business growing.

He added that since agriculture is involved in commodities that are bought and sold in world markets, the status of the dollar is always a factor.

Ray Royce, executive director of the Heartland Agricultural Coalition, said it is harder to be in agriculture.

There are the same challenges of weather, pests and a market that the farmer doesn't control. But there are new challenges.

"We live in a lot smaller world," he said, noting that a disease or a pest can move thousands of miles in a day on an airplane.

There is a lot more competition and costs associated with regulatory actions.

"They don't mind doing things right, but they do mind the cost of doing things in triplicate," Royce said of the farmer.

Those who are profitable in agriculture have to have a "high level of efficiency," Royce said.

Bill Rogers may be reached at 863-386-5825 or wrogers@highlandstoday.com

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