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Record Diesel Prices Hit Canadian Farmers
Confirmed
In Short: Jim Akers, chief operations officer at Bluegrass Stockyards, said record diesel prices are squeezing farmers who rely on heavy trucks and tractors.
Diesel prices are at their highest level on record, coinciding with the harvest season when on-farm diesel usage is at its peak.
Farmers, who are price-takers, generally have no mechanism for passing on the higher cost of fuel to cover the expenses of harvesting equipment and trucks.
In southwest Virginia, Boyd, a fourth-generation farmer and founder of the National Black Farmers Association, is facing a crisis.
Boyd grows soybeans, corn, and wheat and raises beef cattle, with corn selling for about $5 per bushel.
Boyd doesn't store diesel on his farm, so he fills a truck with a couple hundred gallons at a time, bringing it back to transfer the fuel into his combine.
Jim Akers, chief operations officer at Bluegrass Stockyards, said record diesel prices are squeezing farmers who rely on heavy trucks and tractors.
Weaver Hawkins, a local business owner, noted that the effects of high diesel prices are felt by everyone.
What this adds
The surge in diesel prices is attributed to global energy disruptions, including issues in the Strait of Hormuz and attacks on energy infrastructure in the Russia-Ukraine war.
While diesel prices have reached record highs, the exact economic impact on individual farmers and the broader agricultural sector remains to be fully assessed.
Background
Inflation in the UK has risen to 3.1%, driven by significant increases in petrol and diesel prices, according to the Office for National Statistics.
In August, France experienced a rise in inflation, particularly driven by diesel prices, which reached a new record high, affecting the cost of goods and services.
What's confirmed
- Diesel prices are at their highest level on record, coinciding with the harvest season when on-farm diesel usage is at its peak.
- Farmers, who are price-takers, generally have no mechanism for passing on the higher cost of fuel to cover the expenses of harvesting equipment and trucks.
- In southwest Virginia, Boyd, a fourth-generation farmer and founder of the National Black Farmers Association, is facing a crisis.
- Boyd grows soybeans, corn, and wheat and raises beef cattle, with corn selling for about $5 per bushel.
- Boyd doesn't store diesel on his farm, so he fills a truck with a couple hundred gallons at a time, bringing it back to transfer the fuel into his combine.
- Jim Akers, chief operations officer at Bluegrass Stockyards, said record diesel prices are squeezing farmers who rely on heavy trucks and tractors.
- Weaver Hawkins, a local business owner, noted that the effects of high diesel prices are felt by everyone.
What's still developing
- The average price of diesel at the pump in Canada has hit an all-time record high, according to the head of petroleum analysis for the GasBuddy fuel-pricing platform.
- The Canadian national average surpassed $2.50 per litre as of Sept.
- “Diesel is the fuel that moves the economy, and when diesel prices reach record levels, the impact extends far beyond the transportation sector,” says De Haan in a news release, noting higher diesel prices will raise the cost of groceries, household goods, deliveries and countless other everyday products.
- Global energy prices have risen sharply over the last few months due to several compounding factors, including the major disruptions in the Strait of Hormuz and ongoing attacks on energy infrastructure in the Russia-Ukraine war.
- MADISON, Wis. - Drivers are starting the week with high fuel prices.
- Diesel is averaging just over $6.50 a gallon, while the national average for regular gasoline is $4.48.
- Live updates all day, breaking news as it happens and weather every 10 minutes Here's some ways you can save gas with prices climbing.
- Now, he says, diesel is costing him about $7 a gallon, nearly double what he was paying a year ago.
- The national average for diesel has climbed to more than $6.51 a gallon, according to AAA, another economic consequence of the war with Iran.
- "I'm, as my daddy would say, robbing Peter to pay Paul," Boyd said, describing how he is shifting money from other farm expenses to cover the soaring cost of fuel.
- He said more than 400 Black farmers are at risk of losing their farms and need financial assistance.
- The previous record, about $5.85 a gallon, was broken at the beginning of September.