Diesel prices are climbing just as harvest approaches, adding another expense for farmers already dealing with higher fertilizer costs.
Mid-August diesel prices are at their highest level in a decade, according to AAA data.
Ohio corn and soybean farmer Jed Bower says he expects to spend an additional 20- to 25-thousand dollars on diesel this year compared with January prices. Bower, who serves as president of the National Corn Growers Association, says rising input costs are putting more pressure on already-thin farm margins.
Diesel supplies are also tightening. Government data show U.S. distillate inventories are about 13 percent below the five-year average.
A University of Missouri agricultural analyst says harvest is the single most fuel-intensive farm operation, running through November for much of the country.
The diesel market is being pressured by disruptions tied to conflicts involving Iran and Ukraine.
