Fueling equipmentInflated production costs aren’t just impacting farmers’ and ranchers’ fertilizer and feed purchases. Diesel prices are hiking amidst Europe’s tightened restrictions on Russian oil and refinery products and China’s decision to nix pandemic travel restrictions. Production capacity shortfalls are also impacting producers’ pocketbooks.

Current retail diesel prices are hovering around $1 higher than last year, and analysts expect prices to stay elevated. Usually, January and February are prime diesel-buying months for farmers to stock up on their fuel needs. However, those looking for lower market prices may not find them anytime soon. The U.S. lost a whopping one million barrels per day of processing capacity during the pandemic and, coupled with a refinery explosion, likely won’t be able to recover this inventory.

Read more on diesel prices and outlooks here.