As farmers head into the fields for harvest, then truck that crop off-farm for sale and processing, they are getting hit hard at the fuel pump. Mike Steenhoek, Executive Director of the Soy Transportation Coalition, has calculated what an average farm operation might be paying this year over last.
“A typical farmer will easily spend $35,000 more this year in diesel fuel than they did last year, and I don’t know of a lot of farmers that have $35,000 just sitting underneath the sofa cushions in their living room.”
Steenhoek adds that the cost in unavoidable, but that doesn’t mean it’s not frustrating.
“With some purchases you make, it might be more expensive, but you’re getting something out of it. So, like maybe seed technology might be more expensive. Well, you might be getting new traits as a result of that. You might purchase a new piece of equipment. Well, there might be new technology in that new piece of equipment. When you’re spending more on diesel fuel, what you’re buying is the exact same thing as you purchased last year and the year before and the year before. You’re just paying more for it.”
Diesel prices began to skyrocket following the U.S. attack on Iran, leading to closure of the critical fuel shipping lanes through the Strait of Hormuz.