Diesel Prices Spark Crisis for Colorado Agriculture Industry

The high cost of diesel fuel is putting pressure on Colorado's agriculture industry as silage harvest has begun in earnest. Producers are spending more to harvest a lower-yielding crop due to this year's miserable moisture levels, which have brought major implications for corn growers and other crops. The average combine burning red diesel will burn an additional $7,500 in fuel compared to last year, with most operations running multiple choppers, trucks, and generators.

According to Jed Sidwell at Ag Bull Media, the increased fuel costs are a significant burden on farmers, making it difficult for them to make a living. The high diesel prices have also affected the US trucking industry, which touches everything from agricultural products to grocery store shelves. The lack of refineries and a permanent increase in the floor price at the pump are contributing factors to the high fuel costs.

Rachel Gabel notes that global unrest and instability can lead to higher fuel prices, and decreasing supply is a major contributor. She also points out that oil-and-gas processors who removed processing capacity are posting record profits, unlike meatpacking businesses that are struggling with fat cattle from feeders who are losing millions.

Gabel concludes that the high cost of diesel fuel is a crisis that cannot be resolved by a single announcement or investigation, and that it will take addressing the basics of economics to resolve the issue. She emphasizes the need for those in the margins to be able to make a living and feed their children until the price of diesel drops.