WASHINGTON, D.C. (RFD NEWS) — New research shows farmers spent significantly more on diesel fuel during this year’s planting season, adding another expense to an already challenging farm economy.
According to a study released by Democratic members of the Joint Economic Committee, U.S. farmers spent an estimated $1.4 billion more on diesel during planting compared to previous seasons. The analysis, cited by Michigan Farm News, found the additional costs do not include higher prices for on-road diesel or other fuel-related expenses tied to global conflicts.
The report estimates the average farmer spent at least $1,500 more to refill on-farm diesel tanks this spring.
Fuel costs could remain a concern as harvest approaches.
New government data shows diesel demand is running nearly 5 percent above last year’s pace, while inventories remain about 9 percent below the five-year average.
Analysts say that combination leaves the market vulnerable to additional price increases if refinery outages, pipeline disruptions or hurricanes interrupt fuel supplies during the busy harvest season.
With combines, grain trucks and other equipment relying heavily on diesel, higher fuel prices could add to production costs for farmers already navigating tight margins.
