Next time you fill up your truck in town, you’ll notice gas prices are declining. It’s no different for farm diesel. According to the Pro Farmer Inputs Monitor Regional Price Index, diesel prices are trending downward.
While prices are low, it’s a good time to consider locking in fuel for spring, according to ProFarmer editors Brian Grete and Davis Michaelsen.
“We were initially looking for farm diesel to be at $2 by Christmas time,” Michaelsen says. “We’re down a dime this week on our regional average to $1.86 per gallon.”
He says the decline in price is due to the price of crude oil, diesel refining margins and low global demand for the product. Michaelsen adds that ProFarmer analysts expect the decrease to continue into 2016.
“We may see even a nickel to a few cents lower before the first of the year,” he says. “Now may be a good time to lock in at least a portion of that diesel for spring to guard against anything that the crude oil market may throw at us longer term.”
Grete reminds farmers that with tight margins anticipated for 2016, anything you can do to lock in lower input costs will help your bottom line.
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What do diesel prices look like in your area? Let us know in the comments.