U.S. Farmers, Ranchers Choked By Rising Fuel Prices

Fueling up a tractor is getting a lot more expensive. “Our last fill, it was about $10,000 or $11,000 just to top them off, where normally it would be $3,00 or $4,000,” says third-generation farmer Bradley McKay.

Photo Insert: The national average for diesel fuel, which powers most farm equipment, is roughly $5.70 per gallon. Rates on the coasts are roughly $6 per gallon.

“A couple years ago, we were paying $2 per gallon for fuel, and now it’s over $5,” he complained to Emily Baron Cadloff of Modern Farmer, a US trade publication.

The national average for diesel fuel, which powers most farm equipment, is roughly $5.70 per gallon. Rates on the coasts are roughly $6 per gallon, with prices in the Midwest slightly lower.

As a result, farmers like McKay have had to change portions of their operations to cope. Because of the late spring in North Dakota, McKay finished planting in mid-June and held back on tilling the fields as much as he might have otherwise, mindful of the $1,500 cost of filling up one tractor.

McKay grows Midwest staples maize and soybeans in Page, North Dakota. For him, the expense of fuel is far more than simply filling the tanks on his tractors and gear. It has repercussions throughout his farm, as well as neighboring businesses.

“When I call my chemical retailer, I might need a jug or two of chemicals to finish what I’m doing. And a couple of jugs of chemicals are not going to cover their fuel costs [to get it to me]. So, they’re asking ‘is there something else you might need?’ to make it worth their time,” says McKay.

The farmer has also altered his typical practices, transporting his maize to a market that pays less for the grain but is a shorter trip away.

“Usually, we go to an ethanol plant 50 miles away. Right now, I’m hauling to a (grain) elevator that’s closer, that’s 15 miles away, but I’m taking a little bit less for my corn,” he says. “But when I figure it out, I’m still better off than burning $5.50 diesel.”

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