By JESSICA KLIPA - jklipa@bradenton.com

Gas prices dipping below $3 per gallon offer a reprieve for farmers. But other factors like crop demand and cost of production remain shaky in the economic downturn.

“Since so much is dependent on the price of fuel, our hope is that we’re not only going to get relief at the fuel line, but also other places,” said Mac Carraway, president of SMR Farms. So far, prices on crop protection chemicals and fuel-based fertilizer have not dropped along with the fuel prices, he said. We certainly feel better about fuel prices coming down,” he said. “It would be nice to see if it stays down.”

Like many in the agricultural community, Manatee County farmer Bruce Shackelford isn’t sure how long the low gas prices will last. “Our biggest concern is how fast it can go up,” Shackelford said.

Last year, growers were devastated across the country by fuel prices that increased the cost of production. Today, the cost of fungicides and fertilizer are double what they were last year. All it takes is a world conflict or threat of a hurricane for the fuel prices to skyrocket.

“They’ll double in price overnight, but they come down very slowly,” he said. Demand for specialty crops also can tip the delicate balance during tough economic times. Farmers aren’t going to complain about lower fuel prices, but they certainly haven’t reached a point where their prices are comparable to cost production.

Last year, early variety oranges were going for about $1.35 per pound solid, which is the ratio between the sugar content and the amount of juice in a box of fruit. Now, the price has dropped to 85 cents per pound solid. Juice consumption has also tapered, causing some to remain in storage.

“Every little bit helps but we’re nowhere near back where it will be profitable,” said Hugh Taylor, a Manatee County citrus grower.

Savings on fuel costs and transportation are welcomed in the tomato industry, which is on the rebound after the salmonella scare this summer. Wholesalers and repackers are saving about $1 per box in transportation, making them more comfortable with buying product, said Bob Spencer of West Coast Tomato.

“It’s definitely well received in our industry to get this break because the economy’s tough right now,” Spencer said. “Any opportunity there is to save some money gives them a little more money to spend.” Up from two and three dollars a box after the salmonella scare, a box of tomatoes is now going for $20, he said. “It definitely appears that most of the consumers have gotten over whatever fears they may have had about the safety of the tomatoes,” he said.

But so far the real test for demand hasn’t happened because supply has been short, said Reggie Brown, executive vice president of the Florida Tomato Growers Exchange. This year, Florida has shipped about 800 loads of tomatoes while last year’s shipment during this time was 1,290 loads. Since people are living on less money and trying to cut costs, consumption may not be able to keep up with an influx in supply. That could be bad for farmers who are seeing an increased cost of production.

“We don’t know until we get out there with supply whether the market will collapse or whether the market will sustain itself,” Brown said.