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South Dakota farmer considers locking in fuel as diesel costs rise

A farmer in south-central South Dakota says he’s been contemplating locking-in diesel needs through the end of the year through the local co-op.

“It’s less risk to buy now, in the short-term, then it is to wait it out,” says Bryan Jorgensen.

He tells Brownfield he’s expecting diesel costs to rise another $1 or $2 if the U.S. and Iran conflict isn’t resolved soon.

“We burn roughly 90,000 gallons of ag fuel each year. If you break that down into quarters, you’re talking somewhere from 22 to 25,000 gallons. If we lock in prices today at $5 or $5.40 and prices increase another $1, that’s $25,000.”

Jorgensen says there’s enough diesel fuel on the farm to get through harvest, but he wishes they would have locked in prices three months ago. They’re also looking closely at 2027 prices.

“If you look at March through October in 2027, you’re talking roughly $4 plus fuel, so we might even contract some of that.”

He says higher fuel prices translate to higher fertility prices, and they’ve already locked in spring fertilizer.

“That could be another $100 to $200/ton higher, too. We just don’t know. We contracted for what we paid basically last spring. I felt good about that.”

Jorgensen raises row crops, cattle and operates a certified seed business with his family in Tripp County, South Dakota.