The cost of commodity transportation has never been lost on farmers. Whether transporting their goods directly from the farm or entering a multi-stepped supply chain, transportation costs are a critical consideration on any farmer’s budget sheet. Last year, trucking costs hit an all-time high, according to the American Transportation Research Institute (ATRI). According to ATRI data, total marginal costs of trucking came in at $2.25 per mile, up a whopping 21% from last year’s $1.86 per mile. Producers in the southeast saw the highest jump at $2.30 per mile and the West saw the lowest at $2.16.
Diesel fuel prices have provided some relief from their 2022 peak but still hit hard on the wallet at an average price of $3.81 per gallon. However, high transportation costs aren’t always a bad thing. Falling prices generally indicate weakening exports, a more significant financial problem than transportation.
Read more on rising transportation costs here.
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