Harvest under pressure as fuel costs climb

Harvest is here. After months of planning, planting, fertilizing, scouting, spraying and watching the weather, this year’s crop is finally coming out of the field. For farmers, harvest is always a race against time, weather and economics. This fall, the economics are especially challenging.

Diesel prices have climbed dramatically in one of the most fuel-intensive times of year, driving up the cost of nearly every harvest activity, from running combines and grain carts to hauling grain to market. At press time in late September, the average price for highway diesel in Missouri was around $6.34 per gallon, according to AAA. Off-road farm diesel averaged $5.55 to $5.95 per gallon. Last year at this time, Missouri’s average retail price for highway diesel was $3.42. 

Disruptions in global energy markets are to blame, mainly the ongoing wars in Ukraine and Iran that have bottlenecked the supply chain and reduced supplies of crude oil—the main ingredient in diesel and gasoline. It’s yet another force outside the farmer’s control.

And fuel costs don’t stop at the farm gate. They influence trucking rates, rail transportation and every step of the supply chain from field to consumer. The result is more pressure on farm margins at a time when input costs are also rising. While commodity prices have improved somewhat in recent weeks, it’s not enough to offset these extra expenses. The crop may be worth more, but it also costs more to produce.

In an environment like this, efficiency matters more than ever. That doesn’t mean cutting costs for the sake of cutting costs. The goal is to ensure every dollar invested contributes to the profitability of the operation.

Across the ag industry, businesses are looking for ways to do more with less as fuel prices rise. At MFA, that means evaluating transportation options and leveraging technology to improve operational efficiency. On the farm, it may mean reducing unnecessary passes across the field, improving harvest logistics or finding new ways to stretch every gallon of fuel.

Farmers cannot control the price of diesel or influence global markets. But they can control how they respond—evaluating costs, improving efficiency, using all the data at their disposal. And they can choose trusted partners, like MFA, to help them navigate uncertainty. They need tools, information and relationships that assist in making sound decisions when conditions become difficult. That’s why MFA is here, and that’s why the cooperative model remains relevant. 

A cooperative doesn’t eliminate risk or guarantee profitability. But it does provide a network of people committed to helping farmers succeed, a trusted source of information and a valued perspective on difficult decisions.

Diesel powers the harvest, but those relationships fuel the future. -Allison Jenkins