Record Diesel Prices Put Pressure on Idaho Farmers During Harvest

Harvest season is underway across Idaho, and farmers are facing another rising cost as they work to bring crops out of the fields: diesel fuel.

AAA reported Idaho’s average diesel price at $6.41 per gallon Friday, a record high for the state. The price was up nearly $2.60 from a year earlier and nearly $1 from a month ago.

The increase comes at a critical time for farmers, who rely on diesel to operate tractors, combines and other equipment and to transport crops from fields to elevators, processors and eventually grocery stores.

For farmhand Rocklen Mouw, the work continues regardless of the price of fuel.

“So for us, we can’t particularly stop, ’cuz we need to continue providing that feed,” Mouw said. “So regardless of the price, we need to be able to deliver feed, harvest the feed.”

At Big D Ranch, fourth-generation farmer Neil Durrant said the amount of diesel used each day can quickly add up.

“They’re probably pushing 150 gallons a day, so you start adding that up, you know, we’re pushing over 1,000 gallons a day pretty, pretty easily,” Durrant said.

Durrant has on-site fuel storage totaling about 45,000 gallons, including diesel and gasoline. He said he expects to need another 10,000 gallons of fuel to get through the fall.

Even with that supply, Durrant said rising prices are difficult to absorb.

“I don’t see anything softening, so we’re probably going to be buying here this week, and it’s going to hurt,” he said. “It’s going to hurt bad ’cuz, you know, farming, I don’t get to add a fuel surcharge on to my crops when I sell them.”

Brett Wilder, an assistant professor of agricultural economics at the University of Idaho, said higher fuel costs can affect farmers beyond the price they pay at the pump.

“Not only do you have higher fuel bill at your heavier-use time, but you also have higher custom rates as those things get adjusted forward,” Wilder said.

Fuel costs can also become more significant when farmers need diesel-powered pumps to move water.

“Turn off water coming from reservoirs and turn on those diesel-powered pumps to pull water up from an aquifer to try to finish the crop year, guess what? That hits that pocketbook really, really hard,” Wilder said.

Wilder also said higher diesel prices can increase transportation expenses throughout the agricultural supply chain.

“You increase the price of diesel fuel by 78% year to date, plus you tack on a little bit of additional risk premium that’s going to be placed on that transportation charge,” Wilder said. “There’s going to be higher expense to getting food to the consumer, food to the grocery store, food to the retailer.”

Farmers, however, do not necessarily see those higher transportation costs returned to them.

“It’s all being eaten up by that transportation system and the distribution chain,” Wilder said.

Durrant said farmers have limited ability to pass additional fuel costs along.

“In ag, there’s no one to pass that cost on to besides yourself,” he said.

Still, the harvest cannot wait.

“I’ve got to get it done right now, because if I don’t, it’s going to cost us more,” Durrant said. “I’ve got to get through harvest, because if we don’t harvest the crops, it’s not going to do us any good. And I’ve got to get the fall fieldwork done now.”

Durrant said the current situation feels uncertain.

“Well, honestly, we’re in some uncharted territory, is really what it feels. I don’t know what it’s going to do,” he said.

For Mouw, the work continues one day at a time.

“Yep. Same time tomorrow. Keep going until it’s all done.”

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