Diesel Prices Set to Remain Elevated Through 2027
Kansas farmers and truckers are facing elevated diesel prices due to rising crude costs, limits on refining capacity, and transport bottlenecks. According to Gregg Ibendahl, a farm management specialist with Kansas State University's Extension Service, these factors will likely persist into 2027 and beyond.
The price of diesel in Kansas stands at $6.29 per gallon, and Ibendahl estimates that it could take two years for prices to return to normal levels, even if global tensions are resolved.
The escalating costs can be attributed to a combination of factors, including the war between Russia and Ukraine, which has reduced diesel exports by Russia and strained supply chains. The price of oil has increased from the low to mid-$70s to more than $100 a barrel, accounting for around 70 cents of the increase per gallon.
The impact on farmers is significant, with Ibendahl estimating that an extra $10 per acre could be added to corn farming costs. This could spell disaster for many operations, where profitability hangs in the balance.