Record High Diesel Prices Affect Farmers

(KNSI) – As the price for a gallon of regular unleaded in St. Cloud hovers around the $4 mark, diesel fuel hit a new record high today. A gallon of diesel is now $5.65 after a 15 cent spike overnight.

This can cause real problems, as almost all consumer goods and the farming industry that grows our food rely on diesel, and major spikes will directly affect consumers not just at the pump, but also at the grocery store, clothing store, and online retailers. Thom Petersen, Commissioner of the Minnesota Department of Agriculture, explains how the price of diesel effects consumers at the store, saying, “We put all kinds of livestock and poultry on the road every day. We’re definitely seeing a high transportation cost for that. You know, somebody has to pay for that. And so it’s either the farmer on the back end or the consumer on the front end. And so we’ll continue to see that till those prices come down.”

There is also a surge in demand at this time of year anyway due to peak agricultural needs for harvest, and early blending of heating oils ahead of winter. Petersen shares farmers’ financial concerns, saying “They’re paying, in some cases, 30-40% more than they were a year ago. It’s nice to see grain crops rallying a little bit right now, but you’re in one door and out the other. It’s very frustrating, and you put that on with fall fertilizer prices. Some farmers face a strong headwind at the moment.”

Additionally, local governments and school districts will have to deal with cost overruns operating diesel-powered buses, snowplows, and emergency vehicles.

___