Record-High Diesel Prices Add to Farm Inflation Concerns

Record-high diesel prices, coupled with expensive inputs, have furrowed most producers’ brows this spring. And now, to make matters worse, a diesel shortage could be on the horizon as the U.S. is currently sitting on supplies at a 30-year low. The national average diesel price is now $5.54/gallon, an increase of $.22 from last week, which was also record-setting. Currently in the U.S., no state is reporting diesel prices below $5.12/gallon.

What’s causing the increase? Russia, continued supply chain challenges and lower production along the East Coast have all created a perfect diesel storm. Sanctions against Russia from all over the world, along with increased post-pandemic demand are driving higher costs and lower supplies in several countries. Some farmers have even reported farm diesel prices higher than on-road diesel – the opposite is usually the case.

Read more on diesel prices here.