Michigan Farmers Hit by Higher Diesel Costs Amid Harvest Season
Michigan farmers are facing higher diesel costs as they begin their fall harvest of corn and soybeans. Diesel prices in Michigan spiked to $6.89 a gallon last week, but have since dropped to $6.71, still $3 more than the price at this time last year.
For third-generation farmer Dave Rupprecht, the high diesel costs are a concern as he tries to market his crops and offset some of these expenses.
Teresa Sissung, commodity and regulatory relations manager for the Michigan Farm Bureau, noted that farm equipment uses hundreds of gallons of diesel per week, with some farms needing deliveries every day to stay ahead of fuel usage.
The high diesel prices are attributed to conflicts in Iran and Ukraine, which have affected global supplies. President Donald Trump is reportedly considering a diesel export ban, which could lower prices by 30 cents per gallon.
However, Breyon Williams, chief economist at the Groundwork Collaborative, expressed doubts about the effectiveness of an export ban, citing logistical challenges in transporting diesel from the Gulf Coast to other parts of the country.