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Higher fuel prices a curse and a blessing

The hurricanes, drought and record gas prices in 2005 didn't stop the farm sector from posting another banner year, according to a new report from Jason Henderson, a senior economist with the Center for the Study of Rural America. He says 2006 looks to be another strong year.

"The biggest threat to this positive outlook appears to be higher energy prices," he says. "Rising oil and natural gas prices quickly translate into higher production costs for factories, farms and households."

On the other hand, Henderson says, those higher fuel prices are also spurring a new wave of investments and market opportunities in rural America, thanks to bio-based energy.

Download the full report at http://www.kansascityfed.org/RuralCenter/mainstreet/MSE_I_06.pdf.

The hurricanes, drought and record gas prices in 2005 didn't stop the farm sector from posting another banner year, according to a new report from Jason Henderson, a senior economist with the Center for the Study of Rural America. He says 2006 looks to be another strong year.

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