Record Diesel Prices Raise Harvest Transportation Costs Again

Record diesel prices are adding to harvest and grain transportation costs.

LUBBOCK, Texas (RFD News) — U.S. diesel prices climbed to a record $6.285 per gallon for the week ending September 14, adding new pressure to harvest, grain hauling, drying, and other fuel-intensive farm work.

The national average rose 31.8 cents in one week and stood $2.546 above the same week last year. Distillate inventories were 106.3 million barrels in early September, 13% below the five-year average.

Global supply disruptions are adding pressure. Shipping through the Strait of Hormuz has fallen sharply since the U.S.-Iran conflict began, while the closure of a major Saudi oil pipeline has further constrained crude flows.

Higher diesel costs are also feeding into transportation expenses as grain movement accelerates. Rail grain carloads were 24% above last year, while barge grain movement was 73% higher during the latest reporting week.

For producers, the immediate concern is harvest cost exposure. Expensive diesel can raise combine operating costs, trucking expenses, custom rates, and freight charges throughout the grain supply chain.

Farm-Level Takeaway: Record diesel prices are increasing both direct harvest expenses and the cost of moving grain to market.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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