WASHINGTON, D.C. (RFD-TV News) — Corn and soybean harvest is well underway across farm country, and higher diesel prices are adding to farmers’ costs.
Mike Steenhoek with the Soy Transportation Coalition says a typical farmer could spend substantially more on diesel this year than last year.
“A typical farmer will easily spend $35,000 more this year in diesel fuel than they did last year, and I don’t know of a lot of farmers that have $35,000 just sitting underneath the sofa cushions in their living room.”
With fuel an unavoidable expense for farmers and ranchers, Steenhoek says higher diesel prices are especially frustrating.
“With some purchases you make, it might be more expensive, but you’re getting something out of it. Maybe seed technology might be more expensive. You might be getting new traits as a result of that. You might purchase a new piece of equipment. There might be new technology in that new piece of equipment. When you’re spending more on diesel fuel, what you’re buying is the exact same thing as you purchased last year and the year before and the year before. You’re just paying more for it.”
The added pressure comes as President Trump signed an executive order this week allowing farmers and ranchers to use dyed diesel on roadways through the end of the year. The order directs the IRS to waive penalties normally associated with using dyed diesel on highways and calls for the federal diesel tax to be deferred for eligible users, including farmers and truckers.
The administration says the federal diesel tax is about 24 cents per gallon, with states also being encouraged to offer similar relief.
