Farmers Struggle with Profitability as Diesel Prices Soar

As harvest season rolls in across Kansas and Michigan, farmers are facing a crunch that's not about production but profitability. For Chad Epler, a corn and soybean grower in southeast Kansas, the math on his operation has gotten tighter this year. His farm wrapped up its corn harvest August 19, weeks ahead of much of the state, with numbers he hasn't seen in decades.

Epler's optimism is tempered by the reality that national on-road diesel prices have hit a record six dollars a gallon. He and his Michigan counterpart, John Delmotte, pointed to fuel costs as a major concern during a recent roundtable discussion on Agriculture of America. Epler noted that his farm didn't contract red diesel when it was trading near $3.30, betting prices would ease, but they didn't.

Delmotte echoed the sentiment in Michigan, where scattered weather issues have knocked some fields back despite what he called a 'respectable crop of corn and soybeans.' The pressure is evident across both states, with growers looking for ways to cut fuel use. Delmotte mentioned that his own fuel tanks are running lower than usual heading into harvest after holding off buying, hoping for relief that never came.

The farm bill remains stuck in limbo, years overdue, and a major sticking point for producers who don't want to rely on taxpayer support long term but need workable policy. Epler emphasized the importance of crop insurance as a risk management tool, particularly in areas with below-average to poor soybean crops like his own.