Filling a tractor tank daily now costs some farmers $1,000, twice what it was a year ago. And the most intensive part of the farming season is still ahead.
U.S. diesel prices are the highest ever, with warnings of shortages, especially in the eastern U.S.
“Diesel is the lifeblood of farming,” Iowa corn and soybean farmer Ben Riensche told Bloomberg.
Read more: Diesel Prices Just Hit a New Record High, Here’s Why a Diesel Shortage May Be Next
His fuel costs have jumped to $70 an acre from $35. Fertilizer, grain and machinery parts can’t move efficiently through the system without diesel, which is also needed for his massive earth-moving equipment.
Meanwhile, propane has nearly doubled in price from last year. It is used to heat farmers’ homes and power dryers during harvest to reduce corn moisture and make the grain suitable for storage and sale. That’s likely to be significant this season for producers who are battling heavy rains and flooding in the U.S. northern states and Canadian prairies.
The average price for a gallon of regular unleaded gasoline in the U.S. hit a record of $4.59 on Thursday,according to AAA. It is the highest national average recorded by AAA since they began tracking fuel costs in 2000. On average, prices are about 50 cents more a gallon than they were a month ago. A year ago, the average cost of a gallon of gas was $3.04.
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Diesel Prices Just Hit a New Record High, Here’s Why a Diesel Shortage May Be Next
