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Farmers could get a break on fuel prices

An ag economist says locking in lower diesel fuel prices could help improve margins.

Greg Ibendahl with Kansas State projects prices to be lower this year than they were last year. “If you can find those places where you can save a little bit of dollars, I think you’ll definitely help your bottom line. When profits are thin, you certainly don’t want to have negative net farm income. You’re looking for anything you can do to generate a positive cash flow.”

He tells Brownfield prices are generally higher in April and May and October and November. “If you’re a farmer and you’re buying fuel on a typical year, you’re probably going to pay a little bit higher for the diesel fuel than you would if you bought maybe your spraying diesel fuel in the wintertime and maybe (buy) your fall diesel fuel in the summertime, you’ll typically get a little better price that way.”

He says last year oil prices were in the $70 per barrel range but have dropped to $60 per barrel.

Ibendahl says trade and tariff disputes aren’t likely to have a major impact on prices unless there is a significant world event that occurs.  

Greg Ibendahl: