Diesel prices inching back up
The popular fuel used to run farming equipment has increased by 22 cents in just a week.
Farmers might have some tough decisions ahead as diesel prices inch back up. Right now, AAA shows the average price for a gallon of diesel is $4.18 nationwide. The Energy Information Association shows on-road diesel has gone up $0.22 per gallon in just a week.
Brokers at Allendale say it is largely due to cuts in production—sometimes averaging a million barrels a day— and they warn the uptrend could put the hurt on U.S. farmers.
They suggest exploring options to lock in prices now to help get through the fall harvest. However, these experts believe fuel demand for the year is currently at its peak.
As bad as this might seem, diesel prices were nearly a dollar more per gallon just a year ago, with a nationwide average of $5.15.