Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Sam Darkatsh with Raymond James.
Sam Darkatsh - Raymond James
Good morning, gentlemen.
Jim Hagedorn
Good morning, Sam.
Sam Darkatsh - Raymond James
Couple of questions here. First-off, Dave, you mentioned $500 million of total input exposure. I think you said you were 65% hedged. Can you talk a little bit about the exposure to urea versus diesel fuel? What the sensitivity might be for us to look at from a diesel fuel standpoint, since when we'll get more visibility on that line item?
Dave Evans
Yeah. Sure, Sam. I would say we continue with the hedging practice that we've articulated in the past. We're hedging six months out on urea. If you look at our production cycle from a urea perspective, we feel reasonably comfortable. From a diesel perspective, we are hedging further out, which is different from what we did last year. So we have more certainty this year than we had at the same point last year.
I'd say our biggest risk in terms of exposure is in the second quarter, once we hit the -- I am sorry, yeah the second quarter. Third and fourth quarters were probably about 50% of our costs are hedged at this point from a diesel perspective.
So we watch diesel fairly closely and I'd say the other big bucket of costs that comprised the remaining 35% is going to be resin costs, which are from our empty packages, bottles and those types of items.
Sam Darkatsh - Raymond James
Okay. Second question, we are hearing rumblings of: your number one competitor on the consumer side in the States considering a mid-season price increase. Is that what you are referring to? And: if that does happen you would -- if you were to take a mid-season price increase would that be incremental that? Is that how we are getting out, since you are not planning on doing that kind of action now? But it would be more reactionary: would that be then incremental to your plan at this point? I mean: how should we look at that?
Jim Hagedorn
Yes. We've got the question. Look -- start by saying the answer is: ?yes?. It would be incremental. You know, and it same as starts with basically my view, and I think, Barry and Dave share it. That we're in a pretty good place right now, where we've got tailwinds that I am going to say at least cover what we view is the cost of goods risks for the year. Okay, based on what we know now.
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