Diesel Supplies Likely to Remain Tight Ahead of 2024 Planting

While harvest is behind us in rural America, spring planting is ahead in 2024. Diesel fuel supplies have been tight for farmers. Erin Wroge, Refined Fuels Project Manager for the Alcivia Cooperative, a division of CHS in Wisconsin, says it looks like supplies are going to remain shorter than farmers would like.

“As we’ve experienced over, you know, the past 18 months to a couple of years, diesel supply is tight, and we will continue to see it be tight for the foreseeable future primarily because there are several refineries that have gone offline, some that have converted to renewable diesel. But the good news is that CHS takes that into account in our planning, and we work to get every drop of diesel we can for our producers and our customers. The good news is we’re out there spreading the word that it’s critical to be mindful of your planning.”

She says it’s a good idea to buy ahead when prices fit the budget.

“Invest in quality fuels that you can buy when supply is available, and then use when you need it most. So, buy when the contract pricing is beneficial to the producer, but then also be able to use that quality fuel when they need it to help mitigate some of those supply rollercoasters, if you will.”

Winter is the time to plan ahead for diesel purchases.

“When contract pricing is beneficial for them is going to be the best time, and I would say, yes, over the winter when things have slowed down from harvest and you can take a look at planting ahead of you and forecast what those demands might be, winter is a great time to have all of those planning and strategic conversations with your sales reps.”