Record Diesel Prices Threaten Farm Profits Ahead of Harvest

Farmers are facing unprecedented challenges as diesel prices soar to an all-time high just before harvest season. The national average price of diesel reached $6.05 per gallon on September 11, a 61% increase from last year's average of $3.75 per gallon.

This significant jump in fuel costs will add substantial expenses for farmers during one of the most fuel-intensive times of the year. A typical Midwest corn and soybean harvest operation can consume up to 40 gallons of diesel every hour, with prices rising from $90 to $242 per hour at today's average.

The increased diesel costs are likely to offset any potential gains in crop prices for farmers. As Bradley Guse, director of BMO's Agribusiness Group, stated, 'The rise in diesel fuel is going to probably eat up what was able to be made there in the margins.'