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Farmers feel squeeze from record diesel prices

Some farmers say record diesel costs are putting added pressure on the financial viability of their operations.

“Six-dollar diesel – I’ve never seen it in my life.”

South-central Nebraska farmer Matt Sullivan says the expense could be devastating for growers this fall. “Luckily I still have some off-road contracted, but when that is depleted then it’s going to hit the bottom line hard.”

Dave Warner, a farmer from northeast Nebraska, said it cost him $12,000 to fill his storage tank and it will likely last a week during harvest. “It’s a tough deal to go into your banker and say “hey, I need more money for the fall because the diesel price just jumped twice than what was in June.”

Eastern Nebraska cattle producer Matt Jedlicka says this is the time of year when cattle are moving. “You have calves going through sale barns and back rounding lots. A lot of yearlings are hitting the feedyards now. I’m seeing a surcharge or a premium for what I’m seeing with my trucks and this is really bad timing.”

Nebraska Farm Bureau economist Abby Petersen says the run-up in prices across all inputs has been shocking. “What that means for Nebraska crop producers is an estimated $759 million loss and a $266 million loss for soybeans.”

The producers say while commodity futures have moved higher, it’s not outpacing the increase in costs.

According to data from StoneX, the U.S. average diesel prices is $6.29/gallon, up another $0.32 week-on-week.