Minnesota Diesel Prices Hit Record High as Harvest Season Begins

Diesel prices in Minnesota have hit an all-time high of $6.26 per gallon, according to GasBuddy. This is a record that has never been approached before, says Patrick De Haan, Head of Petroleum Analysis. The current price far surpasses the previous record high of $5.57 per gallon set in 2022.

The sharp increase is attributed to geopolitical tensions between Ukraine and Russia, as well as refinery outages in Chicago. This has led to 'a lot of pain at the pump' for farmers who are about to enter harvest season, De Haan said.

Edward Usset, a grain market economist from the University of Minnesota, notes that fuel costs typically account for 4% of direct costs for farmers. However, he also points out that expenses such as seeds, fertilizers, and chemicals tend to be higher costs.

Usset adds that 'fuel costs ripple through all the costs,' making it challenging for farmers. On a positive note, corn and soybean prices have recovered nicely over the last four to five weeks, with prices reaching their best levels in three years.