Diesel prices hitting record highs at a bad time for farmers

Diesel prices reach new record

Diesel prices in the United States have reached record levels at a difficult time for farmers. Many growers are now using large amounts of fuel to harvest corn and soybeans, two of the country’s major crops.

The rise in diesel costs comes after an already difficult farming year. Farmers have also faced higher prices for fertiliser, seeds and agricultural equipment.

Fuel costs rise during Iran war

US diesel prices reached a record average of $5.85 per gallon on Sept. 4. The price later increased to an average of $6.05 per gallon on Friday, according to the American Automobile Association (AAA).

The six-month war with Iran has disrupted global fuel supplies and pushed energy prices higher. The increase is adding further pressure to farmers who depend heavily on diesel-powered machinery.

Farmers struggle with rising expenses

“Those prices hurt,” said Paul Mitchell, a professor of agricultural and applied economics at the University of Wisconsin-Madison. “And it’s not just the harvesting. It’s the hauling of everything, moving the grain or the silage from the field to the farm and then from the farm to wherever they’re selling it.”

Jason Kurtz, a corn and soybean farmer near Forest City, Missouri, said his diesel expenses had doubled this year. His combine uses around 200 gallons, or 760 litres, of fuel each day and he expected to operate it for about 30 days.

Kurtz also needs diesel for tractors and trucks. The higher fuel bill is making it harder for him to manage the overall cost of farming.

High diesel costs cut farm profits

“We have to harvest,” he said in an interview at his farm about 90 miles, or 145 kilometres, outside Kansas City on Tuesday. “We have to run the machines. We have to use the diesel, so it cuts into our bottom line.”

Farmers cannot easily reduce fuel use during harvest because the crops must be collected on time. As diesel prices rise, their production and transportation costs increase, leaving them with less profit from their crops.

Record diesel prices are creating another major challenge for US farmers. If fuel costs remain high, farmers may face lower profits and higher costs for transporting crops to markets.

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