Farmers Feel the Sting of Record Diesel Prices, More Fearful of Harvest Needs
Prices Impacting Farmers
While diesel fuel prices are off their summer peak, the high cost is hitting hard at the farm level. Farmers say they’ve never seen diesel prices this high during their careers. It’s costing them hundreds and even thousands of dollars to fuel their implements, and it's not even harvest yet when demand is at its highest.
Goodwin, S.D., farmer Todd Hanten didn’t feel the record diesel prices when he planted this spring because he had contracted ahead. But with prices nearly doubling over last year he’s concerned about the big cost that’s coming.
“It’s going to make a big difference in the fall,” he says. “I’m sure that it's going to look a lot different when it comes with today’s prices verses what I’ve got it contracted at.”
Minden, Iowa, farmer Kevin Ross says he gets sticker shock every time he fills up his tractor.
“The diesel fuel aspect, yeah, you’re looking at double the price, if not more. So, just big prices, big numbers that you’re paying with these bills,” he says.
Hanten is also a cattle producer and the high fuel price makes it more expensive to haul a load of 35 steers to market.
“The cost of shipping a load of steers from my place to Green Bay, Wis., where some of them go is one whole steer at $2,000,” he says.
So both livestock and grain farmers such as Tim Ostrem of Centerville, S.D., say diesel prices are cutting into their profits for 2022.
“The cost of fuel to do these things has gone up considerably. Input costs have gone up a lot so that’s cut into margins and now what looked like was going to be a really good year doesn’t look quite as profitable,” Ostrem says.
And that’s even with many farmers booking their fuel and other input needs ahead for 2022 and grain prices still at relatively high levels historically.
Farmers say they're even more concerned about high fuel and overall high input prices for 2023, especially with the geopolitical uncertainty surrounding the markets.
